UBS Financial Services Incorporated of Puerto Rico (UBS PR)—Failure to Establish and Maintain a Supervisory System and Procedures

New Orleans stockbroker fraud attorney

New Orleans stockbroker fraud attorney

UBS Financial Services Incorporated of Puerto Rico Allegedly Failed to Establish and Maintain a Supervisory System and Procedures

UBS Financial Services Incorporated of Puerto Rico allegedly failed to establish and maintain a supervisory system and procedures reasonably designed to ensure the suitability of transactions in CEFs in certain circumstances, according to a recent FINRA Letter of Acceptance, Waiver and Consent (AWC).

In addition, UBS PR allegedly failed to monitor the combination of leverage and concentration levels in customer accounts to ensure that certain customers’ transactions were suitable, the AWC notes.

Beginning in 1994, UBS PR acted as underwriter in the initial public offerings of 23 affiliated, non-exchange-traded closed-end funds (CEFs) with an initial offering price of over $5 billion, the AWC reports.

UBS PR Censured, Fined $7,500,000 and Ordered Restitution to 165 Customers in the Amount of $10,978,402

By mid-August 2013, the Puerto Rico bond market had suffered a massive decline in market value, the AWC notes, and that by the end of 2013, most CEF shares and Puerto Rican Municipal Bonds lost between 20-50% of their value.

165 customers with conservative or moderate investment objectives and $2 million or less in assets had accounts that were allegedly more than 75% concentrated in highly-leveraged CEF shares, according to the AWC.

As a result, UBS PR has been censured by FINRA, fined $7,500,000, and ordered restitution to 165 customers in the amount of $10,978,402, the AWC reports.

UBS PR neither admitted nor denied the allegations.

The Peiffer Rosca Wolf Investor Rights Lawyers Are Helping Investors

The Peiffer Rosca Wolf investor rights lawyers are assisting investors who lose money as a result of failure to allegedly establish and maintain a supervisory system and procedures. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of failure to allegedly establish and maintain a supervisory system and procedures encouraged to contact the investor rights lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1200 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.