UBS Financial Services agreed to pay approximately $25 million to settle fraud charges brought by the Securities and Exchange Commission (SEC) on Wednesday that cited “inadequate” training and supervisory oversight of the firm’s financial advisers regarding a complex options trading strategy.
Between February 2016 and February 2017, UBS sold and marketed to approximately 600 investors its “Yield Enhancement Strategy” (YES), which “had the potential to generate modest returns during periods of low market volatility” but could, and eventually did, suffer significant losses during high market volatility, according to the SEC’s order.
