$3.5M Fine for UBS Overcharge Claims

$3.5M Fine for UBS Overcharge Claims

The U.S. Securities and Exchange Commission has fined UBS Financial Services Inc. $3.5 million, settling UBS overcharge claims. The case against UBS claims the bank overcharged retirees and charities for mutual funds. According to filings, the 15,250 customers collectively paid $18.5 million in excessive costs.

UBS Misleads Customers

From January 2010 through June 2015, the SEC claims that UBS misled customers, not disclosing information that could have effected customers’ investment decisions.

According to the SEC, UBS did not tell customers that they were eligible for less expensive mutual funds shares or that UBS would make more money off of the more expensive fund shares. UBS also allegedly did not disclose that customers’ purchases of the more expensive share classes would negatively impact the overall return on their investments, especially when related to the different fee structures for less expensive fund share classes.

UBS Takes Settlement Action

Under the settlement agreement, UBS issued payments with interest to affected customers and converted eligible customers to the mutual fund share class with the lowest expenses for which they are eligible. This was done at no cost to customers.

As of publishing, 970 customers had not cashed or deposited their payments, or changed their addresses. The SEC said that UBS will continue attempts to find these customers.

UBS Repeat Regulatory Offender

In the past three years, UBS has paid several SEC fines for violation of securities laws. In January 2015, the firm settled a $14.4 million sanction from the SEC for operating dark pools and providing an unfair advantage to high-frequency traders.

In October of that same year, UBS agreed to pay $20 million to settle SEC claims regarding misleading statements when offering structured notes to retail investors. And most recently, the SEC announced a $15 million settlement with UBS AG over allegations that the bank failed to properly train staff regarding complex financial products sold to retail investors. Moreover, within the last several years, the SEC, FINRA, and Puerto Rico securities regulators collectively have levied approximately $40 million in penalties and fines on UBS relating to UBS’s

recommendations and sales of over-concentrated positions in Puerto Rico bond funds, improperly recommending loans that were collateralized by the risky Puerto Rico funds, and improper supervision over Puerto Rico brokers who sold the risky Puerto Rico bond funds.

Have You Lost Money Investing with UBS?

If you believe you have lost money investing with UBS or have been the victim of stockbroker misconduct, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an securities fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our securities fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact an securities fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

Los Angeles Securities Attorney: Are Mutual Funds Right For Me?

Before you invest, it is important that you know what you are investing in. Any good stockbroker should be able to explain not only what you are investing in, but also the positives and potential negatives of any investment. In fact, brokers are obligated to provide you with a balanced presentation regarding recommended investments.

In a nutshell, a mutual fund is an investment vehicle that invests in and holds a basket of securities, such as stocks and bonds. Generally speaking, shareholders contribute the money used for investment, and the fund is professionally managed. The various securities that make up the mutual fund are known as “the portfolio,” and investors can buy or sell shares in the portfolio.

The Advantages of Investing in a Mutual Fund from a Los Angeles Securities Attorney

Mutual funds are popular among investors because of they typically offer a diversified portfolio of securities. One positive aspect of diversification is that if one of the stocks or bonds drops in value, the fund shares often maintain some price stability because the fund is comprised of many securities. Another advantage is that many mutual funds offer low minimum investments, making a mutual fund an attractive investment for someone looking to invest without large amounts of capital. In addition, mutual funds generally can be sold without much difficulty.

The Disadvantages of Investing in a Mutual Fund from a Los Angeles Securities Attorney

Investments carry risk. Even if your fund is diversified to mitigate risk, you could lose some or all of your money if the securities held in the fund drop in value. Market conditions also can play a factor. Importantly, just because a fund did well in the past does not guarantee its future performance. You also should be aware of the securities that comprise the fund: the more volatile they are, the greater the investment risk is.

Call a Los Angeles Securities Attorney Today

If you invested in a mutual fund and suffered significant losses or were not made aware of the risks of investing, you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles securities attorney today for a consultation to discuss your rights and options.