SEC Forces UBS to Pay $19.5m Penalty Relating to Structured Notes

In a first of its kind enforcement action, UBS AG, one of the world's largest structured notes issuers, agreed to pay $19.5 million to settle charges brought by the SEC regarding false or misleading statements and omissions it made to investors the offering materials of its structured notes linked to a proprietary foreign exchange trading strategy. Specifically, the SEC alleged that UBS failed to disclose hedging trades made by it that reduced the index price tied to the structured notes by 5%. Click here to read more.