UBS Financial Services Inc. has been fined $1.1 million by the Financial Industry Regulatory Authority (FINRA) for violations related to trade confirmation rules over a decade.
The infractions involved more than 330 million trade confirmations issued between February 2014 and November 2024, which contained misleading or incomplete disclosures regarding average trade prices.
FINRA found that UBS either incorrectly indicated that a trade price "may" be an average price when it was not or failed to disclose that the price shown was indeed an average price.
Despite receiving an initial warning in 2014, UBS did not fully address these deficiencies until November 2024.
The discrepancies arose from the bank's trade allocation system, which managed both average-price and single-price transactions, leading to investor confusion about the nature of their trades.
Additionally, FINRA cited UBS for supervisory lapses, noting that the firm lacked adequate systems and written supervisory procedures to ensure accurate trade confirmations and did not sufficiently review them for compliance.
UBS accepted the penalty without admitting or denying the allegations, which also includes a censure alongside the monetary fine.