UBS ordered to pay $204,000 in Puerto Rican bond claim

Finra panel says firm was liable for breach of contract and unsuitability.
MAR 20, 2018

A Finra all-public arbitration panel has found UBS liable for breach of contract and unsuitability in a customer complaint involving Puerto Rican bonds, and ordered UBS to pay compensatory damages of $204,339, plus $66,000 in costs. The claimant in the case, Antonio Gnocchi Franco of Puerto Rico, who also was acting in his role and trustee of his law firm's pension plan, charged that UBS had engaged in misrepresentation, negligence, breach of contract, breach of fiduciary duty, overconcentration, unsuitability, unauthorized trading and use of loan facilities, unjust enrichment and failure to supervise in connection with recommendations to invest in Commonwealth of Puerto Rico bonds and two UBS bond funds. At the close of the hearing, Mr. Franco requested damages of $5,161,273 for "trading losses" or $3,429,438 for "net out-of-pocket losses." In a statement explaining the award, the Financial Industry Regulatory Authority Inc. said the panel granted "in part and denied in part" the claimant's motion. All claims under the Puerto Rico Uniform Securities Act were dismissed.

Latest News

Texas man says SEC and fund could make him pay twice
Texas man says SEC and fund could make him pay twice

A $141M judgment and a federal asset freeze collide over one shrinking pool

Osaic executives Kristy Britt and Greg Cornick to leave
Osaic executives Kristy Britt and Greg Cornick to leave

The firm's CFO and EVP of Wealth Management Solutions are the latest executives to exit the broker-dealer.

Estate planning becomes a client retention issue for financial advisors, survey finds
Estate planning becomes a client retention issue for financial advisors, survey finds

Clients are saying they would consider switching advisors if another professional offered estate planning services, according to a new Trust & Will survey.

Candidly adds AI agents for Trump Accounts, workplace benefits
Candidly adds AI agents for Trump Accounts, workplace benefits

CEO Laurel Taylor says the fintech's composable AI stack helps workers optimize dollars across Trump Accounts, 529s, 401(k)s, and other employee benefits.

BMO adds three advisors in Dallas amid Y'all Street wealth boom
BMO adds three advisors in Dallas amid Y'all Street wealth boom

The bank has swiped three private banking veterans from BNY as the city climbs the ranks of America's fastest-growing wealth hubs.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.