The Securities Exchange Commission disclosed that UBS Group AG (NYSE: UBS) agreed to pay over $15 million for its failure to educate and train its sales force adequately. This included key aspects of some complex financial products that it marketed to retail investors.
The failure of supervision costs UBS $8.23 million in disgorgement in addition to $798,316 in interest apart from a penalty of $6 million.
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The regulator found fault with UBS for its failure to establish and execute policies and procedures meant to train and educate its registered representatives on reverse convertible notes (RCN) sale. This would have enabled them to form a reasonable opinion to make proper recommendations.
UBS sold about $548 million worth of RCNs to over 8,700 retail customers, who were not experienced.
SEC Enforcement Division's Complex Financial Instruments Unit Chief, Michael Osnato, commented, "When it comes to complex financial products, investors are especially dependent upon firms making sure their financial advisors comprehend the potential risks and rewards of the investments they are recommending. The SEC takes a dim view of firms that fall short in their obligations."
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New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.