UBS Settles With SEC Over Sales of Exchange-Traded Product

Posted on July 27th, 2021 at 11:24 AM
UBS Settles With SEC Over Sales of Exchange-Traded Product

From the Desk of Jim Eccleston at Eccleston Law:

The Securities and Exchange Commission (SEC) filed a settled action against UBS Financial Services Inc. over compliance breakdowns relating to sales of a volatility-linked exchange-traded product (ETP). According to the SEC’s order, the relevant ETP was created to monitor short-term volatility projections as measured against derivatives of a volatility index. 

The order also contends that UBS adopted a concentration limit on volatility-linked ETPs, but failed to design a system for overseeing and enforcing that limit for five years. According to the SEC, certain advisors possessed a flawed understanding of the risks associated with holding the volatility-linked ETP for an extended period, which resulted in substantial losses for clients between January 2016 and January 2018. 

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

Tags: eccleston, eccleston law, ubs, sec

Return to Archive

TESTIMONIALS

Previous
Next

Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.

LATEST NEWS AND ARTICLES

February 14, 2025
Jefferies Financial Group Dismisses Miami Advisory Team Amid Alleged Misconduct

Jefferies Financial Group recently terminated a team of Miami-based wealth advisors following allegations of improper money transfers and the use of unauthorized communication methods to conceal the activity.

February 13, 2025
FINRA Panel Denies J.P. Morgan's $39.7 Million Claim Against Former Advisor

A FINRA arbitration panel recently rejected J.P. Morgan Securities’ bid to recover $39.7 million in damages from Edward Turley, a former financial advisor whose alleged
misconduct led the firm to incur significant settlement costs.

February 12, 2025
Edward Jones Advisor Barred by FINRA Over Allegations of Unauthorized Account Changes

FINRA has barred Gwendolyn J. Hayes, a former Edward Jones advisor in Oregon after allegations surfaced that she altered client account information without authorization.