A Financial Industry Regulatory Authority (FINRA) arbitration panel in San Juan has ordered UBS to pay an investor $1.45m for losses incurred by its Puerto Rico closed-end bond funds after finding two UBS units liable in a case that alleges securities fraud, misrepresentation and other misdeeds. The decision is the latest blow against UBS, which was accused of misleading investors about how it would manage their money when Hurricane Maria hit last year.
A Financial Industry Regulatory Authority (FINRA) arbitration panel in San Juan has ordered UBS to pay an investor $1.45m for losses incurred by its Puerto Rico closed-end bond funds after finding two UBS units liable in a case that alleges securities fraud, misrepresentation and other misdeeds. As we have previously noted, UBS is already defending itself against hundreds of customer complaints and arbitration claims, collectively seeking $1.5bn in damages from funds that have lost much of their value due to fears over the size of Puerto Rico's debt burden and the weakness of the economy.