FINRA Cracks Down On UBS and Berthel Fisher

Posted on May 4th, 2022 at 1:35 PM
FINRA Cracks Down On UBS and Berthel Fisher

From the Desk of Jim Eccleston at Eccleston Law:

The Financial Industry Regulatory Authority (FINRA) has issued a $350,000 fine to UBS for failing to report trades in TRACE-eligible securities. 

UBS failed to report at least 3,850 trades between July 2018 and September 2021, according to FINRA. The trades included nearly 340 large-block transactions in corporate debt securities as well as 424 large-block transactions in agency debt securities. UBS failed to timely report the trades, which constituted 4.72% of the firm’s large-block corporate debt transactions and 9.3% of the firm’s large-block agency debt transactions, according to FINRA. FINRA additionally alleged that UBS failed to timely report at least 1,830 transactions in securitized products. 

Additionally, FINRA has issued a $100,000 fine to Berthel Fisher & Co. for failing to adequately supervise options trades in a client’s account. Last summer, FINRA initiated an examination sweep evaluating the supervision, communications and diligence relating to the opening of options accounts. According to FINRA, Berthel Fisher failed to exercise due diligence to verify a client’s investment experience and knowledge when the firm was reviewing a client’s request for approval to trade options in August 2015. Berthel Fisher additionally recommended options trades to the client between August 2015 and February 2018 absent a reasonable belief that the transactions were suitable for the client, according to FINRA. FINRA additionally alleged that Berthel Fisher failed to create and implement a supervisory system to effectively evaluate the suitability of options trading in client accounts. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.


Tags: eccleston law, ubs, finra

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