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SEC: Forces UBS to return $8 million to investors in complex ETF product | Fintech InShorts: Latest fintech news, analysis by experts
Monday, December 23, 2024

SEC: Forces UBS to return $8 million to investors in complex ETF product

SEC: Forces UBS to return $8 million to investors in complex ETF product

  • SEC filed a settled action against UBS Financial Services Inc. for compliance failures relating to sales of volatility linked ETP
  • This is the sixth matter arising from the Enforcement Division’s ETP Initiative
  • As described the ETP at issue is designed to track short-term volatility expectations in the market as measured against derivatives of a volatility index
  • According to the order, the issuer of the product warned UBS that it was not appropriate to hold the product for extended periods
  • The order finds that UBS prohibited brokerage representatives from soliciting sales of the product
  • According to the order, UBS prohibited the financial advisers from making additional recommendations

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