FINRA fines UBS unit $850K for failing to properly monitor customer transactions

UBS Financial Services, a subsidiary of the Swiss banking giant UBS, has been fined $850,000 for failing to properly monitor transactions between its broker-dealers and third parties.

The Financial Industry Regulatory Authority (FINRA) announced the fine Monday in an order, alleging that a UBS registered representative facilitated private securities transactions totaling over $7.2 million to a third party, in violation of FINRA rules, and that UBS did not have sufficient procedures to monitor such transactions.

From 1997 to 2021, a UBS registered representative sold fixed annuity products offered by a third party–which happened to be an entity formed by a college friend and business acquaintance of the representative–to 30 UBS customers.