UBS dinged by Virginia after broker recommended gold and precious metals securities

The overconcentration of securities was not suitable for some clients, Virginia alleged

Feb 8, 2019 @ 2:08 pm

By Bruce Kelly

UBS Financial Services Inc. last month agreed to pay Virginia's State Corporation Commission $319,000 to settle charges that a former broker in a branch in Roanoke made unsuitable recommendations of certain gold and precious metals securities to 18 clients, according to the order, which was dated Jan. 28.

Virginia alleged that the sales issue occurred in 2013 and 2014. After it investigated the clients' gold and precious metal purchases, Virginia alleged that the clients held an overconcentration of "said securities when the recommendations were not suitable" for some of the clients, in violation of state securities rules, according to the order.

UBS will offer to pay $289,000 to the 18 clients and $30,000 to Virginia to cover the cost of the investigation.

The order does not identify the former UBS broker involved in the sales of the securities. UBS cooperated in Virginia's investigation and neither admitted nor denied the allegations by the securities division.

A spokesman for UBS, Peter Stack, did not comment when asked about the settlement.

Like many large firms, UBS deals with a steady amount of regulatory issues. For example, at the end of last year, UBS was fined $14.5 million for failing to run anti-money laundering programs reasonably designed to monitor high-risk transactions in customer accounts.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

How to build a more efficient practice

Efficiency is the key to real growth for advisers. But achieving efficiency can be a real challenge. Carly de Diego of AdvisorEngine offers some tips for successfully building a more efficient practice.

Video Spotlight

We started as a boutique firm with huge ambitions. Schwab was a perfect fit.

Sponsored by Schwab Advisor Services

Recommended Video

Keys to a successful deal

Latest news & opinion

Robert Moore, Cetera CEO, stepping down for health reasons

Chairman Ben Brigeman will serve as interim chief executive while a search for a permanent CEO is conducted.

The AMT is no longer a problem for many clients

With income thresholds higher and a lower SALT deduction after tax reform, the AMT will realistically only apply to wealthy Americans with out-of-the-ordinary tax events.

Cetera, other broker-dealers refuse to sign Ohio National contracts

Advisers wonder what the lack of a formal brokerage agreement means from a regulatory standpoint.

10 millennials making their mark in Washington — and beyond

These next-generation leaders are raising their voices and gaining influence over financial advice regulation and legislation.

Warburg Pincus among private equity managers interested in acquiring Kestra Financial

Sources say Kestra is being valued at between $600 million and $800 million, about eight to 10 times EBITDA.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print