Two UBS Advisory Firms Settle Charges Arising From Failure to Disclose Change in Investment Strategy

Posted on November 3rd, 2015 at 9:10 AM
Two UBS Advisory Firms Settle Charges Arising From Failure to Disclose Change in   Investment Strategy

From the Desk of Jim Eccleston at Eccleston Law LLC:

The Securities and Exchange Commission announced that two UBS advisory firms agreed to settle charges relating to their failing to disclose a change in investment objective of a close-end fund, UBS Willow Fund LLC, which they advised. Both firms agreed to collectively pay $17.5 million, $13 million of which will be returned to harmed investors.

In 2008, the Willow Fund elected to purchase large quantities of credit default swaps. It appears that UBS failed to provide proper disclosure of the investment changes to investors or to the board of directors. Several fund brochures from 2008 and 2009 misquoted the fund’s strategy and investment letters from 2008 to 2011 contained misleading information regarding the fund’s dealings with credit default swaps.

The fund began to incur huge losses due to those investments leading to its liquidation in 2012.

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: Eccleston Law LLC, James Eccleston, eccleston, Eccleston Law, SEC, Willow Fund, UBS,

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We just wanted to say thanks for your work in helping us get back some of the money we lost. We are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. We really appreciate the work you did.

Allan and Adele


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