UBS fined for unlicensed sales assistants
Last Updated: 16:37 December 20, 2013
The amount includes a $50,000 fine UBS Financial Services is paying in each of the 50 states, said Gerald Rome Colorado's deputy securities commissioner. It also includes back licensing fees to pay for sales assistants outside of Colorado who did transactions here even though they weren't licensed here, Rome said.
Based on license fee amounts agreed to in the national settlement, UBS had probably 1,000 sales assistants across the country who should have been licensed in states other than their home states, but were not, Rome said.
Peter Ford, head of UBS Financial's office in Boulder, declined to comment. A national UBS spokesman characterized the matter as a "legacy registration issue."
"UBS is pleased to have resolved this legacy registration issue, which involved unsolicited orders," said Gregg Rosenberg, senior media relations office at the UBS Americas office in New York City. An unsolicited order is one in which a buyer calls a stock brokerage to make a stock purchase.
Across the country, UBS Financial Services is expected to pay about $4.4 million to resolve the multistate investigation into practices regarding the work of its sales assistants from 2004 to 2010, based on figures from Rome. The investigation found that sales assistants required to be licensed in their home states and in the states where they accepted orders from clients were not always licensed in the other states, according to a press release from the Colorado Division of Securities.
Investigators looked at offices in Delaware, Missouri, New Hampshire, New Jersey, Texas and Vermont, in addition to Colorado.
The state Division of Securities said investigators are looking into similar practices made at other brokerage firms. The national firm RBC Wealth Management was sanctioned in July for similar reasons. Merrill Lynch was sanctioned in 2010 for similar reasons. RBC and Merrill Lynch have offices in Boulder.
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