UBS FINANCIAL SERVICES INC. · 2020-03-07 · UBS FINANCIAL SERVICES INC. CRD# 8174 SEC# 8-16267...

BrokerCheck Report

UBS FINANCIAL SERVICES INC.

Section Title

Report Summary

Firm History

CRD# 8174

1

10

Firm Profile 2 - 9

Page(s)

Firm Operations 11 - 33

Disclosure Events 34

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CRD# 8174

SEC# 8-16267

Main Office Location

1200 HARBOR BOULEVARDWEEHAWKEN, NJ 07086Regulated by FINRA Woodbridge Office

Mailing Address

315 DEADERICK STREET3RD FL, COMPLIANCE DEPARTMENTNASHVILLE, TN 37238

This firm is a brokerage firm and an investmentadviser firm. For more information aboutinvestment adviser firms, visit the SEC'sInvestment Adviser Public Disclosure website at:

Business Telephone Number

201-352-3000

https://www.adviserinfo.sec.gov

Report Summary for this Firm

This report summary provides an overview of the brokerage firm. Additional information for this firm can be foundin the detailed report.

Disclosure Events

Brokerage firms are required to disclose certaincriminal matters, regulatory actions, civil judicialproceedings and financial matters in which the firm orone of its control affiliates has been involved.

Are there events disclosed about this firm? Yes

The following types of disclosures have beenreported:

Type Count

Regulatory Event 457

Civil Event 5

Arbitration 409

Firm Profile

This firm is classified as a corporation.

This firm was formed in Delaware on 06/30/1969.

Its fiscal year ends in December.

Firm History

Information relating to the brokerage firm's historysuch as other business names and successions(e.g., mergers, acquisitions) can be found in thedetailed report.

Firm Operations

Is this brokerage firm currently suspended with anyregulator? No

This firm conducts 24 types of businesses.

This firm is affiliated with financial or investmentinstitutions.

This firm has referral or financial arrangements withother brokers or dealers.

This firm is registered with:

• the SEC• 10 Self-Regulatory Organizations• 53 U.S. states and territories

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This firm is classified as a corporation.

This firm was formed in Delaware on 06/30/1969.

CRD#

This section provides the brokerage firm's full legal name, "Doing Business As" name, business and mailingaddresses, telephone number, and any alternate name by which the firm conducts business and where such name isused.

Firm Profile

Firm Names and Locations

Its fiscal year ends in December.


SEC#

8174

8-16267

Main Office Location

Mailing Address

Business Telephone Number

Doing business as UBS FINANCIAL SERVICES INC.

201-352-3000

Regulated by FINRA Woodbridge Office

1200 HARBOR BOULEVARDWEEHAWKEN, NJ 07086

315 DEADERICK STREET3RD FL, COMPLIANCE DEPARTMENTNASHVILLE, TN 37238


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This section provides information relating to all direct owners and executive officers of the brokerage firm.

Direct Owners and Executive Officers

Firm Profile

Position

Percentage of Ownership

Is this a public reportingcompany?

Position Start Date

Does this owner direct themanagement or policies ofthe firm?

UBS AMERICAS INC.

OWNER

75% or more

No

Domestic Entity

11/2000

Yes

Is this a domestic or foreignentity or an individual?

Legal Name & CRD# (if any):

Position



Position Start Date


CHANDLER, JASON RICHARD

PRESIDENT

Less than 5%

No

Individual

01/2019

Yes

2382465



Position


Position Start Date

FRANCOMANO, LISA M.

CHIEF COMPLIANCE OFFICER FOR THE ADVISORY BUSINESS

Less than 5%

Individual

10/2006

2263875






Direct Owners and Executive Officers (continued)

Firm Profile




Less than 5%

No

No

Position



Position Start Date


HATCH, PAUL MARTIN

DIRECTOR

Less than 5%

No

Individual

04/2016

Yes

1350155



Position



Position Start Date


HOLLOWELL, THOMAS DOUGLAS

GENERAL COUNSEL

Less than 5%

No

Individual

01/2019

No

5146435



MATTONE, RALPH

1840894






Firm Profile

Position



Position Start Date


PRINCIPAL FINANCIAL OFFICER

Less than 5%

No

Individual

07/2019

No

1840894


Position



Position Start Date


MOLINARO, SAMUEL LEONARD

DIRECTOR

Less than 5%

No

Individual

04/2016

Yes

2414084



Position


Position Start Date


NARATIL, THOMAS

CHAIRMAN UBS FINANCIAL SERVICES INC

Less than 5%

Individual

01/2016

Yes

1192911







Firm Profile



No

Yes

Position



Position Start Date


NEWCOMB, CATHERINE ANN

MANAGING DIRECTOR

Less than 5%

No

Individual

05/2018

No

4517197



Position



Position Start Date


PRIMIANO, ANTHONY

CHIEF COMPLIANCE OFFICER

Less than 5%

No

Individual

10/2019

No

2090776



SANBORN, MARK WILSON

Individual

1805781







Firm Profile

Position



Position Start Date


MANAGING DIRECTOR

Less than 5%

No

Individual

11/2017

No


Position



Position Start Date


SOMMA, JOSEPH

PRINCIPAL OPERATIONS OFFICER

Less than 5%

No

Individual

05/2019

Yes

2219496






This section provides information relating to any indirect owners of the brokerage firm.

Indirect Owners

Firm Profile

UBS AG

SHAREHOLDER

UBS AMERICAS HOLDING LLC

75% or more

Yes

Foreign Entity

11/2001

Yes



Company through whichindirect ownership isestablished

Relationship to Direct Owner

Relationship Established




UBS AMERICAS HOLDING LLC

SHAREHOLDER

UBS AMERICAS INC.

75% or more

No

Domestic Entity

08/2015

Yes









UBS GROUP AG

UBS AG

Foreign Entity







Indirect Owners (continued)

Firm Profile

SHAREHOLDER

UBS AG

75% or more

Yes

11/2014

Yes










Firm History

This section provides information relating to any successions (e.g., mergers, acquisitions) involving the firm.

No information reported.




Firm Operations

RegistrationsThis section provides information about the regulators (Securities and Exchange Commission (SEC), self-regulatoryorganizations (SROs), and U.S. states and territories) with which the brokerage firm is currently registered andlicensed, the date the license became effective, and certain information about the firm's SEC registration.

This firm is currently registered with the SEC, 10 SROs and 53 U.S. states and territories.

SEC Registration Questions

This firm is registered with the SEC as:

A broker-dealer:

A broker-dealer and government securities broker or dealer:

A government securities broker or dealer only:

This firm has ceased activity as a government securities broker or dealer:

Yes

Yes

No

No

Federal Regulator Status Date Effective

SEC Approved 01/22/1971

Self-Regulatory Organization Status Date Effective

FINRA Approved 10/13/1936

BOX Exchange LLC Approved 05/09/2012

Cboe Exchange, Inc. Approved 06/17/1981

NYSE American LLC Approved 02/25/1988

NYSE Arca, Inc. Approved 02/17/1958

NYSE Chicago, Inc. Approved 12/01/1970

Nasdaq ISE, LLC Approved 07/06/2000

Nasdaq PHLX LLC Approved 01/22/1971

Nasdaq Stock Market Approved 07/12/2006

New York Stock Exchange Approved 11/17/1982




Firm Operations

Registrations (continued)

U.S. States &Territories

Status Date Effective

Alabama Approved 01/20/1966

Alaska Approved 07/10/1970

Arizona Approved 01/09/1957

Arkansas Approved 07/13/1967

California Approved 11/30/1970

Colorado Approved 02/01/1983

Connecticut Approved 12/01/1970

Delaware Approved 10/06/1981

District of Columbia Approved 12/01/1970

Florida Approved 04/27/1983

Georgia Approved 09/22/1981

Hawaii Approved 12/01/1970

Idaho Approved 10/29/1981

Illinois Approved 07/01/1942

Indiana Approved 10/21/1981

Iowa Approved 07/14/1983

Kansas Approved 12/01/1970

Kentucky Approved 07/16/1982

Louisiana Approved 04/20/1983

Maine Approved 02/13/1984

Maryland Approved 10/03/1981

Massachusetts Approved 07/31/1981

Michigan Approved 02/03/1983

Minnesota Approved 07/15/1982

Mississippi Approved 10/14/1981

Missouri Approved 07/18/1983

Montana Approved 05/05/1983

Nebraska Approved 10/08/1981

Nevada Approved 07/18/1983

New Hampshire Approved 02/02/1983

New Jersey Approved 07/14/1983

New Mexico Approved 10/07/1981

New York Approved 12/02/1982

U.S. States &Territories

Status Date Effective

North Carolina Approved 07/15/1982

North Dakota Approved 10/21/1981

Ohio Approved 07/16/1982

Oklahoma Approved 07/17/1982

Oregon Approved 10/24/1981

Pennsylvania Approved 10/01/1970

Puerto Rico Approved 09/01/1984

Rhode Island Approved 02/01/1983

South Carolina Approved 10/28/1981

South Dakota Approved 07/15/1982

Tennessee Approved 08/17/1981

Texas Approved 07/25/1983

Utah Approved 04/21/1983

Vermont Approved 02/13/1984

Virgin Islands Approved 03/30/2005

Virginia Approved 09/22/1981

Washington Approved 04/20/1983

West Virginia Approved 09/30/1981

Wisconsin Approved 07/15/1983

Wyoming Approved 03/10/1967




Firm Operations

Types of BusinessThis section provides the types of business, including non-securities business, the brokerage firm is engaged in orexpects to be engaged in.

Other Types of Business

This firm does effect transactions in commodities, commodity futures, or commodity options.This firm does engage in other non-securities business.

This firm currently conducts 24 types of businesses.

Types of Business

Exchange member engaged in exchange commission business other than floor activities

Exchange member engaged in floor activities

Broker or dealer making inter-dealer markets in corporation securities over-the-counter

Broker or dealer retailing corporate equity securities over-the-counter

Broker or dealer selling corporate debt securities

Underwriter or selling group participant (corporate securities other than mutual funds)

Mutual fund underwriter or sponsor

Mutual fund retailer

U S. government securities dealer

U S. government securities broker

Municipal securities dealer

Municipal securities broker

Broker or dealer selling variable life insurance or annuities

Solicitor of time deposits in a financial institution

Broker or dealer selling oil and gas interests

Put and call broker or dealer or option writer

Broker or dealer selling securities of non-profit organizations (e.g., churches, hospitals)

Investment advisory services

Broker or dealer selling tax shelters or limited partnerships in primary distributions

Broker or dealer selling tax shelters or limited partnerships in the secondary market

Trading securities for own account

Private placements of securities

Broker or dealer selling interests in mortgages or other receivables

Broker or dealer involved in a networking, kiosk or similar arrangment with a: insurance company or agency




This firm does effect transactions in commodities, commodity futures, or commodity options.This firm does engage in other non-securities business.

Non-Securities Business Description: TO COMPLY WITH SWAP REGISTRATION REQUIREMENTS ASSOCIATEDWITH DODD FRANK, UBS FINANCIAL SERVICES INC WAS APPROVED ASA SWAP FIRM ON 12/28/2012


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Firm Operations

Clearing Arrangements

This firm does hold or maintain funds or securities or provide clearing services for other broker-dealer(s).

Introducing Arrangements

This firm does refer or introduce customers to other brokers and dealers.

Name: PERSHING LLC

Business Address: ONE PERSHING PLAZAJERSEY CITY, NJ 07399

CRD #: 7560

Effective Date: 03/16/2016

Description: FULLY-DISCLOSED CLEARING ARRANGEMENT FOR CERTAINCUSTOMER ACCOUNTS.




Firm Operations

Industry Arrangements

This firm does not have books or records maintained by a third party.

This firm does not have accounts, funds, or securities maintained by a third party.

This firm does have customer accounts, funds, or securities maintained by a third party.

This firm does not have individuals who control its management or policies through agreement.

This firm does not have individuals who wholly or partly finance the firm's business.

Control Persons/Financing

Name: PERSHING LLC

Business Address: ONE PERSHING PLAZAJERSEY CITY, NJ 07399

CRD #: 7560

Effective Date: 03/16/2016

Description: FULLY-DISCLOSED CLEARING ARRANGEMENT FOR CERTAINCUSTOMER ACCOUNTS.




Firm Operations

Organization AffiliatesThis section provides information on control relationships the firm has with other firms in the securities, investmentadvisory, or banking business.

This firm is, directly or indirectly:

· in control of· controlled by· or under common control withthe following partnerships, corporations, or other organizations engaged in the securities or investmentadvisory business.

No

Yes

ITALY

Yes

11/01/2007

VIA SANTA MARGHERITA 16MILANO, ITALY

UBS ITALIA SIM SPA is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS ITALIA SIM SPA FORMERLYUBS CORPORATE FINANCE ITALIA SPA

Description:

Investment AdvisoryActivities:

Securities Activities:

Country:

Foreign Entity:

Effective Date:

Business Address:

No

Yes

No

11/03/2016

315 DEADERICK STREETNASHVILLE, TN 37238

UBS BUSINESS SOLUTIONS US LLC is under common control with the firm.

UBS AG OWNS 100% OF UBS AMERICAS HOLDINGS LLC WHICH OWNS100% OF UBS BUSINESS SOLUTIONS US LLC.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

LEVEL 7, WISMA HONG LEONG18 JALAN PERAKKUALA LUMPUR, MALAYSIA 50450

UBS SECURITIES MALAYSIA SDN BHD is under common control with the firm.

Business Address:




Firm Operations

Organization Affiliates (continued)

Yes

Yes

MALAYSIA

Yes

09/19/2005

LEVEL 7, WISMA HONG LEONG18 JALAN PERAKKUALA LUMPUR, MALAYSIA 50450

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS SECURITIES MALAYSIA SDNBHD

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

Yes

Yes

CANADA

Yes

12/23/2004

154 UNIVERSITY AVENUESUITE 800TORONTO, CANADA M5H 3Z4

UBS INVESTMENT MANAGEMENT CANADA INC. is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS INVESTMENT MANAGEMENTCANADA INC.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

Yes

No

No

03/16/2016

242 TRUMBULL STREETHARTFORD, CT 06103-1212

107754

UBS AGRIVEST LLC is under common control with the firm.



Country:

Foreign Entity:

Effective Date:

Business Address:

CRD #:




Firm Operations


Yes

UBS REALTY INVESTORS LLC DIRECTLY OR INDIRECTLY OWNS 90% OFUBS FARMLAND INVESTORS LLC.(F/K/A UBS AGRIVEST LLC)AND UBSAMERICAS INC OWNS 10%. UBS AMERICAS IS WHOLLY OWNED BY UBS AG.

Description:


No

Yes

UNITED KINGDOM

Yes

06/12/1987

21 LOMBARD STREETLONDON, UNITED KINGDOM EC3V 9AH

UBS O'CONNOR LIMITED is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS O'CONNOR LIMITEDDescription:



Country:

Foreign Entity:

Effective Date:

Business Address:

Yes

No

TAIWAN

Yes

04/27/1996

5F, NO.7SUNG JEN ROADTAIPEI 100, TAIWAN

UBS SECURITIES INVESTMENT ADVISORY (TAIWAN) LTD is under common control with the firm.

UNDER COMMON OWNERSHIP OF UBS AG.Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

Yes

11/03/2000

SUITE 1606, WISMA GKBIJI, JEND. SUIDRMAN NO.JAKARTA, INDONESIA 10210

PT UBS SECURITIES INDONESIA is under common control with the firm.

Foreign Entity:

Effective Date:

Business Address:




Firm Operations


No

Yes

INDONESIA

Yes

UBS AG DIRECTLY OR INDIRECTLY OWNS PT UBS SECURITIES INDOSNESIAFORMERLY PT UBS WARBURG INDONESIA.

Description:



Country:

Foreign Entity:

Yes

Yes

GERMANY

Yes

06/03/2005

FRIEDENSSTRASSE 6-10FRANKFURT AM MAIN, GERMANY 60311

UBS DEUTSCHLAND AG is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS DEUTSCHLAND AGFORMERLY SCHRODER MUNCHMEYER HENGST AG AND UBS WEALTHMANAGEMENT AG.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

Yes

Yes

BAHAMAS

Yes

11/03/2000

P.O. BOX N-7757UBS HOUSE EAST BAY STREETNASSAU, BAHAMAS

UBS (BAHAMAS) LTD is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS (BAHAMAS) LTD.Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

UBS FUND SERVICES (CAYMAN) LTD is under common control with the firm.




Firm Operations


Yes

Yes

CAYMAN ISLANDS

Yes

11/03/2000

227 ELGIN AVENUEP.O. BOS 509 GTGRAND CAYMAN, CAYMAN ISLANDS KY

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS FUND SERVICES (CAYMAN)LTD FORMERLY UBS WARBURG (CAYMEN ISLAND)LTD.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

Yes

Yes

PRINCIPAUTE DE MONACO

Yes

11/03/2000

2 AVENUE DE GRADE-BRETAGNEMONTE CARLO, PRINCIPAUTE DE MONACO

UBS (MONACO) S.A. is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS (MONACO) S.A.Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

Yes

Yes

PANAMA

Yes

11/03/2000

CALLE 53 E. MARBELLASWISS TOWERPANAMA, REPUBLIC OF PANAMA

UBS (PANAMA) SA is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS (PANAMA) S.A.Description:



Country:

Foreign Entity:

Effective Date:

Business Address:




Firm Operations


UBS AG DIRECTLY OR INDIRECTLY OWNS UBS (PANAMA) S.A.Description:

Yes

No

CANADA

Yes

11/03/2000

154 UNIVERSITY AVENUETORONTO, ONTARIO, CANADA

UBS BANK (CANADA) is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS BANK (CANADA).Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

No

Yes

No

11/03/2000

10 STATE HOUSE SQUARE15TH FLOORHARTFORD, CT 06103-3604

41848

UBS FUND SERVICES (USA) LLC is under common control with the firm.

UBS AMERICAS HOLDING LLC OWNS 100% OF UBS AMERICAS INC. THAT INTURN OWNS 100% OF ARI ACQUISITION CORP. AND 26.125% OF UBSREALTY INVESTORS LLC. ARI ACQUISITION CORP. OWNS 73.875% OF UBSREALTY INVESTORS LLC. IN TURN, UBS REALTY INVESTORS LLC OWNS99% OF THE APPLICANT AND ARI ACQUISITION CORP. OWNS 1% OF THEAPPLICANT.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

CRD #:

11/03/2000

677 WASHINGTON BLVDSTAMFORD, CT 06901

UBS O'CONNOR LLC is under common control with the firm.

Effective Date:

Business Address:




Firm Operations


Yes

No

No

11/03/2000

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS O'CONNOR.Description:



Country:

Foreign Entity:

Effective Date:

Yes

No

No

11/03/2000

10 STATE HOUSE SQUARE15TH FLHARTFORD, CT 06103-3604

UBS REALTY INVESTORS LLC is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS REALTY INVESTORS LLC.Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

No

Yes

CANADA

Yes

11/03/2000

154 UNIVERSITY AVENUETORONTO, CANADA M5 3Z4

UBS SECURITIES (CANADA) LTD is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS SECURITIES (CANADA) LTD.Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

65, URE DE COURCELLESPARIS, FRANCE 75008

UBS SECURITIES FRANCE S.A. is under common control with the firm.

Business Address:




Firm Operations


Yes

Yes

FRANCE

Yes

11/03/2001

65, URE DE COURCELLESPARIS, FRANCE 75008

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS SECURITIES FRANCE S.A.FORMERLY UBS WARBURG (FRANCE) S.A.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

Yes

Yes

ISREAL

Yes

11/03/2000

21 SDEROT SHAUL HAMELECHTEL AVIV, ISREAL

UBS SECURITIES ISREAL LIMITED is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS SECURITIES ISREALLIMITED FORMERLY UBS WARBURG (ISREAL) LTD.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

No

Yes

JAPAN

Yes

11/03/2000

EAST TOWER, OETMACHI FIRST SQUARE5-1 NOTEMACHI 1-CHOMECHIYOADA-KU, TOKOYO, JAPAN 100-004

UBS SECURITIES JAPAN LTD is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS SECURITIES JAPAN LTDFORMERLY UBS WARBURG (JAPAN) LIMITED.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:




Firm Operations

Organization Affiliates (continued)UBS AG DIRECTLY OR INDIRECTLY OWNS UBS SECURITIES JAPAN LTDFORMERLY UBS WARBURG (JAPAN) LIMITED.

Description:

Yes

Yes

THE NETHERLANDS

Yes

11/03/2000

HERENGRAPCHT 600AMSTERDAM, THE NETHERLANDS

UBS INVESTMENT BANK NEDERLAND BV is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS INVESTMENT BANKNEDERLAND BV FORMERLY UBS WARBURG (NEDERLAND) BV.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

Yes

Yes

HONG KONG

Yes

11/03/2000

ONE EXCHANGE SQUARE, 25TH FLOOR28 CONNAUGHT PLACE CENTRALHONG KONG, CHINA

UBS SECURITIES ASIA LIMITED is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS SECURITIES ASIA LIMITEDFORMERLY UBS WARBURG ASIA LIMITED.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

Yes

AUSTRALIA

Yes

11/03/2000

LEVEL 25, GOVERNOR PHILLIP TOWER1 FARRAR PLACESYDNEY, AUSTRALIA 2000

UBS SECURITIES AUSTRALIA LTD is under common control with the firm.


Country:

Foreign Entity:

Effective Date:

Business Address:




Firm Operations


Yes

Yes

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS SECURITIES AUSTRALIA LTDFORMERLY UBS WARBURG AUSTRALIA EQUITIES LTD.

Description:



No

Yes

HONG KONG

Yes

11/03/2000

25TH FLOOR, ONE EXCHANGE SQUARECONNAUGHT PLACE CENTRALHONG KONG, CHINA

UBS SECURITIES HONG KONG LIMITED is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS SECURITIES HONG KONGLIMITED FORMERLY UBS WARBURG HONG KONG LIMITED.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

Yes

Yes

NEW ZEALAND

Yes

11/03/2000

LEVEL 23, STOCK EXCHANGE HOURSE119 QUEEN STREETAUKLAND, NEW ZEALAND

UBS SECURITIES NEW ZEALAND LIMITED is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS SECURITIES NEW ZEALANDLIMITED FORMERLY UBS WARBURG NEW ZEALAND LTD.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

LEVEL 23, STOCK EXCHANGE HOUSE119 QUEEN STREETAUKLAND, NEW ZEALAND

UBS NEW ZEALAND LIMITED is under common control with the firm.

Business Address:




Firm Operations


Yes

Yes

NEW ZEALAND

Yes

11/03/2000

LEVEL 23, STOCK EXCHANGE HOUSE119 QUEEN STREETAUKLAND, NEW ZEALAND

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS NEW ZEALAND LIMITEDFORMERLY UBS WARBURG NEW ZEALAND, EQUITIES LTD.

Description:



Country:

Foreign Entity:

Effective Date:

No

Yes

SOUTH AFRICA

Yes

05/11/2004

64 WIERDA VALLEYSANDTON, SOUTH AFRICA

UBS SOUTH AFRICA (PROPRIETARY) LIMITED is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS SOUTH AFRICA(PROPRIETARY) LIMITED FORMERLY UBS WARBURG SECURITIES (SOUTHAFRICA)(PTY)LTD AND UBS SECURITIES SOUTH AFRICA (PROPRIETARY)LIMITED

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

No

Yes

THAILAND

Yes

11/03/2000

93/1 DIETHELM, TOWER A, 2ND FLOORWIRELESS ROAD PAUTHUMWANBANGKOK, THAILAND 10330

UBS SECURITIES (THAILAND) LTD. is under common control with the firm.



Country:

Foreign Entity:

Effective Date:

Business Address:




Firm Operations


UBS AG DIRECTLY OR INDIRECTLY OWNS UBS SECURITIES (THAILAND)LTD. FORMERLY UBS WARBURG SECURITIES CO., LTD.

Description:

Yes

Yes

INDIA

Yes

11/03/2000

2/F, HOECHST HOUSENARIMAN POINTMUMBAI, INDIA

UBS SECURITIES INDIA PRIVATE LIMITED is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS SECURITIES INDIA PRIVATELIMITED FORMERLY UBS WARBURG SECURITIES INDIA PRIVATE LIMITED.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

No

Yes

TAIWAN

Yes

11/03/2000

15F, #167, TUN HWANORTH ROADTAIPEI, TAIWAN, ROC 105

UBS SECURITIES LIMITED TAIWAN BRANCH is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS SECURITIES LIMITEDTAIWAN BRANCH FORMERLY UBS WARBURG SECURITIES LIMITED, TAIWANBRANCH

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

11/03/2000

19/F TOWER ONE, AYALA TRIANGLEAYALA AVENUEMAKATI, PHILIPPINES 1254

UBS SECURITIES PHILIPPINES INC. is under common control with the firm.

Effective Date:

Business Address:




Firm Operations


No

Yes

PHILLIPPINES

Yes

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS SECURITIES PHILIPPINESINC.FORMERLY UBS WARBURG SECURITIES PHILIPPINES, INC.

Description:



Country:

Foreign Entity:

Yes

Yes

SPAIN

Yes

11/03/2000

FORTUNY 18, SECOND FLOORMADRID, SPAIN 28010

UBS SECURITIES ESPANA SOCIEDAD DE VELORES S.A. is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS SECURITIES ESPANASOCIEDAD DE VELORES S.A. FORMERLY UBS WARBURG SECURITIES(ESPANA), S.V.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

No

Yes

ARGENTIA

Yes

11/03/2000

25 DE MAYO NO 555, 15TH FLOORBUENOS AIRES, ARGENTINA C1002ABK

UBS TRADING S.A. is under common control with the firm.

UBS AG DIRECTLY OR INDIRECTLY OWNS UBS TRADING S.A. FORMERLYUBS WARBURG TRADING S.A.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

CJSC UBS SECURITIES is under common control with the firm.




Firm Operations


No

Yes

RUSSIA

Yes

09/21/2005

52/4 KOSMODAMIANSKAYANABAREZHNAYAMOSCO, RUSSIA

UBS AG DIRECTLY OR INDIRECTLY OWNS CJSC UBS SECURITIESFORMERLY ZAO BRUNSWICK UBS WARBURG AND CJSC BRUNSWICK UBS

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

Yes

Yes

No

11/03/2000

677 WASHINGTON BLVDSTAMFORD, CT

7654

UBS SECURITIES LLC is under common control with the firm.

UBS AMERICAS HOLDING LLC OWNS 32% OF APPLICANT WHICH IS OWNEDBY UBS AMERICAS HOLDING LLC.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

CRD #:

Yes

No

No

11/03/2000

209 SOUTH LASALLE STREETCHICAGO,, IL

UBS GLOBAL ASSET MANAGEMENT (AMERICAS) INC is under common control with the firm.



Country:

Foreign Entity:

Effective Date:

Business Address:




Firm Operations


Yes

UBS GLOBAL ASSET MANAGEMENT (AMERICAS) INC FORMERLY BRINSONPARTNERS IS A FEDERALLY COVERED INVESTMENT ADVISOR AND UNDERCOMMON CONTROL WITH THE APPLICANT.

Description:


No

Yes

ENGLAND

Yes

08/31/1989

1 FINSBURY AVENUELONDON, ENGLAND EC2M 2PA

UBS LIMITED is under common control with the firm.

UBS AMERICAS INC.,DIRECTLY OR INDIRECTLY OWNS 100% OF THE STOCKOF UBS LIMITED FORMERLY KNOWN AS UBS INTERNATIONAL (UK) LTD,FORMERLY KNOWN AS UBS WARBURG LTD.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

Yes

Yes

No

03/28/1990

51 WEST 52ND STREETNEW YORK, NY 10019

583

UBS GLOBAL ASSET MANAGEMENT (US) INC. is controlled by the firm.

UBS AMERICAS HOLDING LLC OWNS 100% OF UBS AMERICAS INC. THAT INTURN OWNS 100% OF APPLICANT.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

CRD #:

CHASE MANHATTEN BANK BUILDINGHATO REY, PR 00918

13042

UBS FINANCIAL SERVICES INCORPORATED OF PUERTO RICO is controlled by the firm.

Business Address:

CRD #:




Firm Operations


Yes

Yes

No

07/20/1987

CHASE MANHATTEN BANK BUILDINGHATO REY, PR 00918

UBS AMERICAS HOLDING LLC OWNS 100% OF UBS AMERICAS INC. THAT INTURN OWNS 100% OF UBS FINANCIAL SERVICES INC., THAT IN TURNOWNS 100% OF APPLICANT.

Description:



Country:

Foreign Entity:

Effective Date:

Business Address:

This firm is directly or indirectly, controlled by the following:

· bank holding company· national bank· state member bank of the Federal Reserve System· state non-member bank· savings bank or association· credit union· or foreign bank

Effective Date:

Business Address:

Description: APPLICANT IS 100% OWNED BY UBS AMERICAS INC. A DELAWARECORPORATION. UBS AMERICAS IS 100% OWNED BY UBS AG, A SWISSBANK. UBS AG, A SWISS BANK IS NOW MAJORITY OWNED BY UBS GROUPAG.

UBS GROUP AG is a Bank Holding Company and controls the firm.

11/28/2014

BAHNHOFSTRASSE 45ZURICH, SWITZERLAND CH-8001

Effective Date:

Business Address:

Description: APPLICANT IS 100% OWNED BY UBS AMERICAS INC., A DELAWARECORPORATION. UBS AMERICAS INC. IS OWNED BY UBS AG, A SWISSBANK.

UBS AG is a Foreign Bank and controls the firm.

11/03/2000

BAHNHOFSTRASSE 45ZURICH, SWITZERLAND




Firm Operations

Organization Affiliates (continued)APPLICANT IS 100% OWNED BY UBS AMERICAS INC., A DELAWARECORPORATION. UBS AMERICAS INC. IS OWNED BY UBS AG, A SWISSBANK.




Disclosure Events

All firms registered to sell securities or provide investment advice are required to disclose regulatory actions, criminal orcivil judicial proceedings, and certain financial matters in which the firm or one of its control affiliates has been involved.For your convenience, below is a matrix of the number and status of disclosure events involving this brokerage firm orone of its control affiliates. Further information regarding these events can be found in the subsequent pages of thisreport.

Final On AppealPending

Regulatory Event 0 457 0

Civil Event 0 5 0

Arbitration N/A 409 N/A




Disclosure Event Details

What you should know about reported disclosure events:

1. BrokerCheck provides details for any disclosure event that was reported in CRD. It also includessummary information regarding FINRA arbitration awards in cases where the brokerage firm wasnamed as a respondent.

2. Certain thresholds must be met before an event is reported to CRD, for example: o A law enforcement agency must file formal charges before a brokerage firm is required to disclose a

particular criminal event.3. Disclosure events in BrokerCheck reports come from different sources:

o Disclosure events for this brokerage firm were reported by the firm and/or regulators. When the firmand a regulator report information for the same event, both versions of the event will appear in theBrokerCheck report. The different versions will be separated by a solid line with the reporting sourcelabeled.

4. There are different statuses and dispositions for disclosure events: o A disclosure event may have a status of pending, on appeal, or final.

§ A "pending" event involves allegations that have not been proven or formally adjudicated.§ An event that is "on appeal" involves allegations that have been adjudicated but are currently

being appealed.§ A "final" event has been concluded and its resolution is not subject to change.

o A final event generally has a disposition of adjudicated, settled or otherwise resolved.§ An "adjudicated" matter includes a disposition by (1) a court of law in a criminal or civil matter,

or (2) an administrative panel in an action brought by a regulator that is contested by the partycharged with some alleged wrongdoing.

§ A "settled" matter generally involves an agreement by the parties to resolve the matter.Please note that firms may choose to settle customer disputes or regulatory matters forbusiness or other reasons.

§ A "resolved" matter usually involves no payment to the customer and no finding ofwrongdoing on the part of the individual broker. Such matters generally involve customerdisputes.

5. You may wish to contact the brokerage firm to obtain further information regarding any of thedisclosure events contained in this BrokerCheck report.

Regulatory - Final

This type of disclosure event involves (1) a final, formal proceeding initiated by a regulatory authority (e.g., a statesecurities agency, self-regulatory organization, federal regulator such as the U.S. Securities and Exchange Commission,foreign financial regulatory body) for a violation of investment-related rules or regulations; or (2) a revocation orsuspension of the authority of a brokerage firm or its control affiliate to act as an attorney, accountant or federalcontractor.

Disclosure 1 of 457

Reporting Source: Regulator

Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT AFTER APREVIOUS AWC FOR RELATED VIOLATIONS, THE FIRM CONTINUED TO FAILTO ESTABLISH AND MAINTAIN REASONABLY DESIGNED SUPERVISORYSYSTEMS AND WSPS TO ADDRESS SHORT POSITIONS IN TAX-EXEMPTMUNICIPAL SECURITIES. THE FINDINGS STATED THAT THE FIRM DID NOTMAINTAIN PROCEDURES OR PROVIDE TRAINING THAT INSTRUCTED ITSEMPLOYEES RESPONSIBLE FOR IDENTIFYING AND COVERING SHORTPOSITIONS IN WHAT WAYS THEY SHOULD ATTEMPT TO OBTAIN MUNICIPALSECURITIES TO COVER SHORT POSITIONS. THE FIRM ALSO DID NOTPROVIDE GUIDANCE TO SUPERVISORS THAT ANY SHORT POSITION INMUNICIPAL SECURITIES HELD PAST SETTLEMENT WOULD RESULT IN THEPAYMENT OF SUBSTITUTE INTEREST TO CUSTOMERS AND INACCURACIESIN CUSTOMER STATEMENTS REGARDING THE TAX STATUS OF CERTAININTEREST ACCRUALS OR PAYMENTS, IF THE SHORT POSITION WAS NOTADDRESSED BEFORE SETTLEMENT DATE. IN ADDITION, THE FIRMGENERATED AND DISTRIBUTED TO ITS MUNICIPAL TRADING DESK AREPORT IDENTIFYING SHORT POSITIONS IN MUNICIPAL BONDS IN FIRM-WIDE ERROR OR OTHER FIRM ACCOUNTS. HOWEVER, THE REPORTIDENTIFIED SHORT POSITIONS ON A POST-SETTLEMENT-DATE BASIS,RESULTING IN TAX CONSEQUENCES FOR THOUSANDS OF MUNICIPALSHORT POSITIONS. AS A RESULT, THE FIRM FAILED TO TAKE ACTION TOADDRESS THE TAX CONSEQUENCES OF CERTAIN SHORT POSITIONS INMUNICIPAL SECURITIES. IN ADDITION, THE FIRM'S SUPERVISORYSYSTEMS WERE NOT REASONABLY DESIGNED TO IDENTIFY WHETHERTAXABLE SUBSTITUTE INTEREST HAD BEEN PAID TO CUSTOMERS.BECAUSE OF THESE FAILURES, THE FIRM INACCURATELY REPRESENTEDTHAT MUNICIPAL BOND POSITIONS ON CUSTOMER ACCOUNTSTATEMENTS AND FORMS 1099 HAD RECEIVED APPROXIMATELY $261,610IN INTEREST THAT WAS TAX-EXEMPT, AND INACCURATELY REPRESENTEDON ADDITIONAL CUSTOMER ACCOUNT STATEMENTS AND FORMS 1099THAT THEY HAD RECEIVED TAXABLE INTEREST, WHEN IN FACT SOME ORALL OF THE INTEREST WAS EXEMPT FROM TAXATION. IN MANYINSTANCES, THE FIRM MADE THESE INACCURATE STATEMENTS TO THESAME CUSTOMER ON MULTIPLE ACCOUNT STATEMENTS. THE FINDINGSALSO STATED THAT THE FIRM FAILED TO MAINTAIN RECORDS OF THESPECIFIC CUSTOMER ACCOUNTS THAT OFFSET ITS MUNICIPAL SHORTPOSITIONS, AS REQUIRED BY MSRB RULE G-8. BY VIRTUE OF THISMISCONDUCT, THE FIRM VIOLATED MSRB RULES G-8, G-17, AND G-27.FURTHERMORE, THE FIRM FAILED TO ESTABLISH AND MAINTAINREASONABLY DESIGNED SUPERVISORY SYSTEMS AND WSPS TOADDRESS SECURITIES EXCHANGE ACT RULE 15C3-3(D)(4). THE FIRMTHEREBY VIOLATED SECURITIES EXCHANGE ACT RULE 15C3-3(D)(4), ANDFINRA RULES 3110 AND 2010. THE FIRM ACCUMULATED SHORT POSITIONSIN CDS AND MUNICIPAL BONDS THAT AT SOME POINT DURING THE PERIODWERE AGED MORE THAN 30 DAYS AND FOR WHICH THE FIRM DID NOTTAKE PROMPT STEPS TO BRING WITHIN POSSESSION OR CONTROL.ALTHOUGH MANY OF THESE POSITIONS REMAINED AGED LESS THAN TWOMONTHS, SOME WERE AGED MORE THAN SEVEN YEARS. FIFTEENMONTHS AFTER THE EFFECTIVE DATE OF THE REVISIONS TO 15C3-3(D)(4),THE FIRM PUBLISHED WRITTEN OPERATIONAL PROCEDURES THATDESCRIBED HOW, ON A DAILY BASIS, THE FIRM WOULD IDENTIFY 30CALENDAR-DAY-OLD DEFICITS AND NOTIFY THE GROUP AT THE FIRMRESPONSIBLE FOR THE CREATION OF THE DEFICIT. HOWEVER, THEFIRM'S PROCEDURES DID NOT GIVE REASONABLE GUIDANCE ORAUTHORIZATION TO THE FIRM'S EMPLOYEES REGARDING THE STEPSTHEY SHOULD THEN TAKE TO OBTAIN THE SECURITIES.

Current Status: Final




Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT AFTER APREVIOUS AWC FOR RELATED VIOLATIONS, THE FIRM CONTINUED TO FAILTO ESTABLISH AND MAINTAIN REASONABLY DESIGNED SUPERVISORYSYSTEMS AND WSPS TO ADDRESS SHORT POSITIONS IN TAX-EXEMPTMUNICIPAL SECURITIES. THE FINDINGS STATED THAT THE FIRM DID NOTMAINTAIN PROCEDURES OR PROVIDE TRAINING THAT INSTRUCTED ITSEMPLOYEES RESPONSIBLE FOR IDENTIFYING AND COVERING SHORTPOSITIONS IN WHAT WAYS THEY SHOULD ATTEMPT TO OBTAIN MUNICIPALSECURITIES TO COVER SHORT POSITIONS. THE FIRM ALSO DID NOTPROVIDE GUIDANCE TO SUPERVISORS THAT ANY SHORT POSITION INMUNICIPAL SECURITIES HELD PAST SETTLEMENT WOULD RESULT IN THEPAYMENT OF SUBSTITUTE INTEREST TO CUSTOMERS AND INACCURACIESIN CUSTOMER STATEMENTS REGARDING THE TAX STATUS OF CERTAININTEREST ACCRUALS OR PAYMENTS, IF THE SHORT POSITION WAS NOTADDRESSED BEFORE SETTLEMENT DATE. IN ADDITION, THE FIRMGENERATED AND DISTRIBUTED TO ITS MUNICIPAL TRADING DESK AREPORT IDENTIFYING SHORT POSITIONS IN MUNICIPAL BONDS IN FIRM-WIDE ERROR OR OTHER FIRM ACCOUNTS. HOWEVER, THE REPORTIDENTIFIED SHORT POSITIONS ON A POST-SETTLEMENT-DATE BASIS,RESULTING IN TAX CONSEQUENCES FOR THOUSANDS OF MUNICIPALSHORT POSITIONS. AS A RESULT, THE FIRM FAILED TO TAKE ACTION TOADDRESS THE TAX CONSEQUENCES OF CERTAIN SHORT POSITIONS INMUNICIPAL SECURITIES. IN ADDITION, THE FIRM'S SUPERVISORYSYSTEMS WERE NOT REASONABLY DESIGNED TO IDENTIFY WHETHERTAXABLE SUBSTITUTE INTEREST HAD BEEN PAID TO CUSTOMERS.BECAUSE OF THESE FAILURES, THE FIRM INACCURATELY REPRESENTEDTHAT MUNICIPAL BOND POSITIONS ON CUSTOMER ACCOUNTSTATEMENTS AND FORMS 1099 HAD RECEIVED APPROXIMATELY $261,610IN INTEREST THAT WAS TAX-EXEMPT, AND INACCURATELY REPRESENTEDON ADDITIONAL CUSTOMER ACCOUNT STATEMENTS AND FORMS 1099THAT THEY HAD RECEIVED TAXABLE INTEREST, WHEN IN FACT SOME ORALL OF THE INTEREST WAS EXEMPT FROM TAXATION. IN MANYINSTANCES, THE FIRM MADE THESE INACCURATE STATEMENTS TO THESAME CUSTOMER ON MULTIPLE ACCOUNT STATEMENTS. THE FINDINGSALSO STATED THAT THE FIRM FAILED TO MAINTAIN RECORDS OF THESPECIFIC CUSTOMER ACCOUNTS THAT OFFSET ITS MUNICIPAL SHORTPOSITIONS, AS REQUIRED BY MSRB RULE G-8. BY VIRTUE OF THISMISCONDUCT, THE FIRM VIOLATED MSRB RULES G-8, G-17, AND G-27.FURTHERMORE, THE FIRM FAILED TO ESTABLISH AND MAINTAINREASONABLY DESIGNED SUPERVISORY SYSTEMS AND WSPS TOADDRESS SECURITIES EXCHANGE ACT RULE 15C3-3(D)(4). THE FIRMTHEREBY VIOLATED SECURITIES EXCHANGE ACT RULE 15C3-3(D)(4), ANDFINRA RULES 3110 AND 2010. THE FIRM ACCUMULATED SHORT POSITIONSIN CDS AND MUNICIPAL BONDS THAT AT SOME POINT DURING THE PERIODWERE AGED MORE THAN 30 DAYS AND FOR WHICH THE FIRM DID NOTTAKE PROMPT STEPS TO BRING WITHIN POSSESSION OR CONTROL.ALTHOUGH MANY OF THESE POSITIONS REMAINED AGED LESS THAN TWOMONTHS, SOME WERE AGED MORE THAN SEVEN YEARS. FIFTEENMONTHS AFTER THE EFFECTIVE DATE OF THE REVISIONS TO 15C3-3(D)(4),THE FIRM PUBLISHED WRITTEN OPERATIONAL PROCEDURES THATDESCRIBED HOW, ON A DAILY BASIS, THE FIRM WOULD IDENTIFY 30CALENDAR-DAY-OLD DEFICITS AND NOTIFY THE GROUP AT THE FIRMRESPONSIBLE FOR THE CREATION OF THE DEFICIT. HOWEVER, THEFIRM'S PROCEDURES DID NOT GIVE REASONABLE GUIDANCE ORAUTHORIZATION TO THE FIRM'S EMPLOYEES REGARDING THE STEPSTHEY SHOULD THEN TAKE TO OBTAIN THE SECURITIES.




Initiated By: FINRA

Principal Sanction(s)/ReliefSought:

Other

Other Sanction(s)/ReliefSought:

N/A

Date Initiated: 10/02/2019

Docket/Case Number: 2016050874301

Principal Product Type: Debt - Municipal

Other Product Type(s):

WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT AFTER APREVIOUS AWC FOR RELATED VIOLATIONS, THE FIRM CONTINUED TO FAILTO ESTABLISH AND MAINTAIN REASONABLY DESIGNED SUPERVISORYSYSTEMS AND WSPS TO ADDRESS SHORT POSITIONS IN TAX-EXEMPTMUNICIPAL SECURITIES. THE FINDINGS STATED THAT THE FIRM DID NOTMAINTAIN PROCEDURES OR PROVIDE TRAINING THAT INSTRUCTED ITSEMPLOYEES RESPONSIBLE FOR IDENTIFYING AND COVERING SHORTPOSITIONS IN WHAT WAYS THEY SHOULD ATTEMPT TO OBTAIN MUNICIPALSECURITIES TO COVER SHORT POSITIONS. THE FIRM ALSO DID NOTPROVIDE GUIDANCE TO SUPERVISORS THAT ANY SHORT POSITION INMUNICIPAL SECURITIES HELD PAST SETTLEMENT WOULD RESULT IN THEPAYMENT OF SUBSTITUTE INTEREST TO CUSTOMERS AND INACCURACIESIN CUSTOMER STATEMENTS REGARDING THE TAX STATUS OF CERTAININTEREST ACCRUALS OR PAYMENTS, IF THE SHORT POSITION WAS NOTADDRESSED BEFORE SETTLEMENT DATE. IN ADDITION, THE FIRMGENERATED AND DISTRIBUTED TO ITS MUNICIPAL TRADING DESK AREPORT IDENTIFYING SHORT POSITIONS IN MUNICIPAL BONDS IN FIRM-WIDE ERROR OR OTHER FIRM ACCOUNTS. HOWEVER, THE REPORTIDENTIFIED SHORT POSITIONS ON A POST-SETTLEMENT-DATE BASIS,RESULTING IN TAX CONSEQUENCES FOR THOUSANDS OF MUNICIPALSHORT POSITIONS. AS A RESULT, THE FIRM FAILED TO TAKE ACTION TOADDRESS THE TAX CONSEQUENCES OF CERTAIN SHORT POSITIONS INMUNICIPAL SECURITIES. IN ADDITION, THE FIRM'S SUPERVISORYSYSTEMS WERE NOT REASONABLY DESIGNED TO IDENTIFY WHETHERTAXABLE SUBSTITUTE INTEREST HAD BEEN PAID TO CUSTOMERS.BECAUSE OF THESE FAILURES, THE FIRM INACCURATELY REPRESENTEDTHAT MUNICIPAL BOND POSITIONS ON CUSTOMER ACCOUNTSTATEMENTS AND FORMS 1099 HAD RECEIVED APPROXIMATELY $261,610IN INTEREST THAT WAS TAX-EXEMPT, AND INACCURATELY REPRESENTEDON ADDITIONAL CUSTOMER ACCOUNT STATEMENTS AND FORMS 1099THAT THEY HAD RECEIVED TAXABLE INTEREST, WHEN IN FACT SOME ORALL OF THE INTEREST WAS EXEMPT FROM TAXATION. IN MANYINSTANCES, THE FIRM MADE THESE INACCURATE STATEMENTS TO THESAME CUSTOMER ON MULTIPLE ACCOUNT STATEMENTS. THE FINDINGSALSO STATED THAT THE FIRM FAILED TO MAINTAIN RECORDS OF THESPECIFIC CUSTOMER ACCOUNTS THAT OFFSET ITS MUNICIPAL SHORTPOSITIONS, AS REQUIRED BY MSRB RULE G-8. BY VIRTUE OF THISMISCONDUCT, THE FIRM VIOLATED MSRB RULES G-8, G-17, AND G-27.FURTHERMORE, THE FIRM FAILED TO ESTABLISH AND MAINTAINREASONABLY DESIGNED SUPERVISORY SYSTEMS AND WSPS TOADDRESS SECURITIES EXCHANGE ACT RULE 15C3-3(D)(4). THE FIRMTHEREBY VIOLATED SECURITIES EXCHANGE ACT RULE 15C3-3(D)(4), ANDFINRA RULES 3110 AND 2010. THE FIRM ACCUMULATED SHORT POSITIONSIN CDS AND MUNICIPAL BONDS THAT AT SOME POINT DURING THE PERIODWERE AGED MORE THAN 30 DAYS AND FOR WHICH THE FIRM DID NOTTAKE PROMPT STEPS TO BRING WITHIN POSSESSION OR CONTROL.ALTHOUGH MANY OF THESE POSITIONS REMAINED AGED LESS THAN TWOMONTHS, SOME WERE AGED MORE THAN SEVEN YEARS. FIFTEENMONTHS AFTER THE EFFECTIVE DATE OF THE REVISIONS TO 15C3-3(D)(4),THE FIRM PUBLISHED WRITTEN OPERATIONAL PROCEDURES THATDESCRIBED HOW, ON A DAILY BASIS, THE FIRM WOULD IDENTIFY 30CALENDAR-DAY-OLD DEFICITS AND NOTIFY THE GROUP AT THE FIRMRESPONSIBLE FOR THE CREATION OF THE DEFICIT. HOWEVER, THEFIRM'S PROCEDURES DID NOT GIVE REASONABLE GUIDANCE ORAUTHORIZATION TO THE FIRM'S EMPLOYEES REGARDING THE STEPSTHEY SHOULD THEN TAKE TO OBTAIN THE SECURITIES.

Resolution Date: 10/02/2019

Resolution:

Other Sanctions Ordered: UNDERTAKINGS

Sanction Details: THE FIRM WAS CENSURED, FINED $2,000,000, AND ORDERED TO PAYRESTITUTION TO CUSTOMERS SUFFICIENT TO COMPENSATE THOSE WHOMAY HAVE INCURRED INCREASED STATE LIABILITIES RESULTING FROMTHE FIRM HAVING MISCHARACTERIZED INTEREST ACCRUED BETWEEN2014 AND 2017 AS TAXABLE SUBSTITUTE INTEREST. THE ALSO AGREES TOCOMPLY WITH THE UNDERTAKINGS ENUMERATED IN THE AWC. FINES PAIDIN FULL ON NOVEMBER 7, 2019.

Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?

No

Sanctions Ordered: CensureMonetary/Fine $2,000,000.00Disgorgement/Restitution

Acceptance, Waiver & Consent(AWC)


http://www.finra.org/brokercheckhttp://www.finra.org/brokercheck_reportshttp://www.finra.orghttps://www.finra.org/rules-guidance/oversight-enforcement/finra-disciplinary-actions?search=2016050874301

www.finra.org/brokercheck User GuidanceTHE FIRM WAS CENSURED, FINED $2,000,000, AND ORDERED TO PAYRESTITUTION TO CUSTOMERS SUFFICIENT TO COMPENSATE THOSE WHOMAY HAVE INCURRED INCREASED STATE LIABILITIES RESULTING FROMTHE FIRM HAVING MISCHARACTERIZED INTEREST ACCRUED BETWEEN2014 AND 2017 AS TAXABLE SUBSTITUTE INTEREST. THE ALSO AGREES TOCOMPLY WITH THE UNDERTAKINGS ENUMERATED IN THE AWC. FINES PAIDIN FULL ON NOVEMBER 7, 2019.

iReporting Source: Firm

Initiated By: FINRA


Other


N/A


Docket/Case Number: 2016050874301

Principal Product Type: Debt - Municipal

Other Product Type(s):

Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT AFTER APREVIOUS AWC FOR RELATED VIOLATIONS, THE FIRM CONTINUED TO FAILTO ESTABLISH AND MAINTAIN REASONABLY DESIGNED SUPERVISORYSYSTEMS AND PROCEDURES TO ADDRESS SHORT POSITIONS IN TAX-EXEMPT MUNICIPAL SECURITIES. FINRA ALSO FOUND THAT THE FIRMFAILED TO TAKE ACTION TO ADDRESS THE TAX CONSEQUENCES OFCERTAIN SHORT POSITIONS IN MUNICIPAL SECURITIES AS A RESULT, THEFIRM INACCURATELY REPRESENTED THAT MUNICIPAL BOND POSITIONSON CUSTOMER ACCOUNT STATEMENTS AND FORMS 1099 HAD RECEIVEDAPPROXIMATELY $261,610 IN INTEREST THAT WAS TAX-EXEMPT, ANDINACCURATELY REPRESENTED ON ADDITIONAL CUSTOMER ACCOUNTSTATEMENTS AND FORMS 1099 THAT THEY HAD RECEIVED TAXABLEINTEREST, WHEN IN FACT SOME OR ALL OF THE INTEREST WAS EXEMPTFROM TAXATION. THE FINDINGS ALSO STATED THAT THE FIRM FAILED TOMAINTAIN RECORDS OF THE SPECIFIC CUSTOMER ACCOUNTS THATOFFSET ITS MUNICIPAL SHORT POSITIONS AS REQUIRED BY MSRB RULES.FINRA ALSO FOUND THAT THE FIRM FAILED TO TAKE PROMPT STEPS TOBRING SHORT POSITIONS IN CDS AND MUNICIPAL BONDS THAT AT SOMEPOINT DURING THE PERIOD WERE AGED MORE THAN 30 DAYS WITHIN ITSPOSSESSION OR CONTROL AS REQUIRED BY THE SECURITIES EXCHANGEACT AND FINRA RULES.



Resolution: Acceptance, Waiver & Consent(AWC)


http://www.finra.org/brokercheckhttp://www.finra.org/brokercheck_reportshttp://www.finra.orghttps://www.finra.org/rules-guidance/oversight-enforcement/finra-disciplinary-actions?search=2016050874301



Other Sanctions Ordered: UNDERTAKINGS

Sanction Details: THE FIRM WAS CENSURED, FINED $2,000,000, AND ORDERED TO PAYRESTITUTION TO CUSTOMERS SUFFICIENT TO COMPENSATE THOSE WHOMAY HAVE INCURRED INCREASED STATE LIABILITIES RESULTING FROMTHE FIRM HAVING MISCHARACTERIZED INTEREST ACCRUED BETWEEN2014 AND 2017 AS TAXABLE SUBSTITUTE INTEREST. THE ALSO AGREES TOCOMPLY WITH THE UNDERTAKINGS ENUMERATED IN THE AWC.

Sanctions Ordered: CensureMonetary/Fine $2,000,000.00Disgorgement/Restitution

Disclosure 2 of 457

i


Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, UBS FINANCIALSERVICES, INC., (THE "FIRM") CONSENTED TO THE SANCTIONS AND TOTHE ENTRY OF FINDINGS THAT THE FIRM'S CONTROLS WERE NOTREASONABLY DESIGNED TO PREVENT THE ENTRY OF ORDERS THATEXCEED APPROPRIATE PRE-SET CREDIT LIMITS BECAUSE, THE FIRM HADONLY SOFT BLOCK CREDIT LIMITS FOR ITS RETAIL CUSTOMERS IN THECONSOLIDATED ORDER ENTRY SYSTEM ("COE"), WHICH WERE NOTSUBJECTED TO ADDITIONAL FIRM CONTROLS OR ANY SUPERVISORYREVIEW OR OVERSIGHT, AND HAD NO CREDIT LIMITS AT ALL IN THEDIRECT ORDER ROUTING SYSTEM (DORS) THROUGH ITSDECOMMISSIONING IN OCTOBER 2014. THE FINDINGS STATED THAT THEFIRM'S CONTROLS ALSO WERE NOT REASONABLY DESIGNED TOPREVENT THE ENTRY OF ERRONEOUS ORDERS, BY REJECTING ORDERSTHAT EXCEED APPROPRIATE PRICE OR SIZE PARAMETERS, ON ANORDER-BY-ORDER BASIS OR OVER A SHORT PERIOD OF TIME, OR THATINDICATE DUPLICATIVE ORDERS, BECAUSE DORS HAD NO DUPLICATIVEORDER CONTROLS THROUGH ITS DECOMMISSIONING IN OCTOBER 2014AND BECAUSE NEITHER OF THE FIRM'S SYSTEMS FACTORED IN THEINDIVIDUAL CHARACTERISTICS OF A SECURITY (SUCH AS AVERAGE DAILYTRADE VOLUME OR A RECENT REFERENCE PRICE) UNTIL AN AVERAGEDAILY TRADE VOLUME CONTROL WAS IMPLEMENTED IN COE ON JULY 13,2018. THE FIRM FAILED TO REASONABLY SATISFY THE REQUIREMENTS TOPREVENT THE ENTRY OF ERRONEOUS ORDERS BY FAILING TO HAVE ANYDUPLICATIVE ORDER CONTROLS IN DORS, AND FAILING TO HAVE ANYCONTROLS IN EITHER ITS DORS OR COE ORDER MANAGEMENT SYSTEMSTHAT CONSIDERED THE INDIVIDUAL CHARACTERISTICS OF A SECURITYUNTIL THE FIRM IMPLEMENTED ADTV CONTROLS IN COE IN JULY 2018. ASA RESULT OF ITS FAILURE TO MAINTAIN A SUPERVISORY SYSTEMRELATING TO CREDIT LIMITS AND ERRONEOUS ORDERS UNDER THEMARKET ACCESS RULE, THE FIRM FAILED TO HAVE A SUPERVISORYSYSTEM REASONABLY DESIGNED TO ENSURE COMPLIANCE WITHAPPLICABLE FEDERAL SECURITIES LAWS, REGULATIONS, AND EXCHANGERULES, IN VIOLATION OF NYSE RULE 3110(B) AND FORMER NYSE RULE342.





Initiated By: NEW YORK STOCK EXCHANGE




Docket/Case Number: 2017-09-00057

Principal Product Type: Other

Other Product Type(s): UNSPECIFIED SECURITIES

WITHOUT ADMITTING OR DENYING THE FINDINGS, UBS FINANCIALSERVICES, INC., (THE "FIRM") CONSENTED TO THE SANCTIONS AND TOTHE ENTRY OF FINDINGS THAT THE FIRM'S CONTROLS WERE NOTREASONABLY DESIGNED TO PREVENT THE ENTRY OF ORDERS THATEXCEED APPROPRIATE PRE-SET CREDIT LIMITS BECAUSE, THE FIRM HADONLY SOFT BLOCK CREDIT LIMITS FOR ITS RETAIL CUSTOMERS IN THECONSOLIDATED ORDER ENTRY SYSTEM ("COE"), WHICH WERE NOTSUBJECTED TO ADDITIONAL FIRM CONTROLS OR ANY SUPERVISORYREVIEW OR OVERSIGHT, AND HAD NO CREDIT LIMITS AT ALL IN THEDIRECT ORDER ROUTING SYSTEM (DORS) THROUGH ITSDECOMMISSIONING IN OCTOBER 2014. THE FINDINGS STATED THAT THEFIRM'S CONTROLS ALSO WERE NOT REASONABLY DESIGNED TOPREVENT THE ENTRY OF ERRONEOUS ORDERS, BY REJECTING ORDERSTHAT EXCEED APPROPRIATE PRICE OR SIZE PARAMETERS, ON ANORDER-BY-ORDER BASIS OR OVER A SHORT PERIOD OF TIME, OR THATINDICATE DUPLICATIVE ORDERS, BECAUSE DORS HAD NO DUPLICATIVEORDER CONTROLS THROUGH ITS DECOMMISSIONING IN OCTOBER 2014AND BECAUSE NEITHER OF THE FIRM'S SYSTEMS FACTORED IN THEINDIVIDUAL CHARACTERISTICS OF A SECURITY (SUCH AS AVERAGE DAILYTRADE VOLUME OR A RECENT REFERENCE PRICE) UNTIL AN AVERAGEDAILY TRADE VOLUME CONTROL WAS IMPLEMENTED IN COE ON JULY 13,2018. THE FIRM FAILED TO REASONABLY SATISFY THE REQUIREMENTS TOPREVENT THE ENTRY OF ERRONEOUS ORDERS BY FAILING TO HAVE ANYDUPLICATIVE ORDER CONTROLS IN DORS, AND FAILING TO HAVE ANYCONTROLS IN EITHER ITS DORS OR COE ORDER MANAGEMENT SYSTEMSTHAT CONSIDERED THE INDIVIDUAL CHARACTERISTICS OF A SECURITYUNTIL THE FIRM IMPLEMENTED ADTV CONTROLS IN COE IN JULY 2018. ASA RESULT OF ITS FAILURE TO MAINTAIN A SUPERVISORY SYSTEMRELATING TO CREDIT LIMITS AND ERRONEOUS ORDERS UNDER THEMARKET ACCESS RULE, THE FIRM FAILED TO HAVE A SUPERVISORYSYSTEM REASONABLY DESIGNED TO ENSURE COMPLIANCE WITHAPPLICABLE FEDERAL SECURITIES LAWS, REGULATIONS, AND EXCHANGERULES, IN VIOLATION OF NYSE RULE 3110(B) AND FORMER NYSE RULE342.


Resolution:

Other Sanctions Ordered:

Sanction Details: THE FIRM WAS CENSURED AND FINED $125,000.


No

Sanctions Ordered: CensureMonetary/Fine $125,000.00



Allegations: ON MAY 14, 2019, UBS FINANCIAL SERVICES INC. ("THE FIRM") AND THENYSE AGREED TO A SETTLEMENT OF THE PROCEEDING WHICH WASACCEPTED AND RESULTED IN THE JUNE 10, 2019 ISSUANCE OF A LETTEROF ACCEPTANCE, WAIVER AND CONSENT ("AWC"). THE AWC CHARGESTHAT THE FIRM VIOLATED SEC RULE 15C3-5 OF THE SECURITIESEXCHANGE ACT OF 1934 (THE "MARKET ACCESS RULE") AND NYSE RULE3110 (SUPERVISION) AND FORMER NYSE RULE 342, FROM AUGUST 2013TO JULY 2018, BY FAILING TO HAVE CERTAIN CONTROLS IN TWO OF ITSORDER MANAGEMENT SYSTEMS THAT WERE REASONABLY DESIGNED TOPREVENT THE ENTRY OF CERTAIN ORDERS AS REQUIRED BY THEMARKET ACCESS RULE. IN PARTICULAR, THE AWC FOUND THE FIRM'SMARKET ACCESS CONTROLS WERE NOT REASONABLY DESIGNED TOPREVENT: (I) THE ENTRY OF ORDERS FOR RETAIL CUSTOMERS THATEXCEEDED APPROPRIATE PRE-SET CREDIT LIMITS, BOTH IN THE FIRM'SCONSOLIDATED ORDER ENTRY SYSTEM (COE) FROM AUGUST 2013 TODECEMBER 2014 BECAUSE DURING THIS PERIOD THE CONTROLS INPLACE WERE SOFT BLOCKS NOT SUBJECTED TO ADDITIONAL PRE-TRADECONTROLS OR SUPERVISORY REVIEW, AND FAILED TO HAVE ANY PRE-TRADE CREDIT LIMITS IN THE FIRM'S LEGACY MANUAL ORDERMANAGEMENT SYSTEM (DORS) FROM AUGUST 2013 UNTIL THAT SYSTEMWAS FULLY DECOMMISSIONED IN OCTOBER 2014; (II) THE ENTRY OFORDERS EXCEEDING APPROPRIATE SECURITY-SPECIFIC PRICE AND/ORSIZE PARAMETERS, BOTH IN COE FROM AUGUST 2013 UNTIL THE FIRM'SIMPLEMENTATION OF ADTV CONTROLS IN THAT SYSTEM IN JULY 2018, ANDIN DORS FROM AUGUST 2013 UNTIL THAT SYSTEM WAS FULLYDECOMMISSIONED IN OCTOBER 2014; AND (III) THE ENTRY OFDUPLICATIVE ORDERS IN DORS FROM AUGUST 2013 UNTIL THAT SYSTEMWAS FULLY DECOMMISSIONED IN OCTOBER 2014. WITHOUT ADMITTINGOR DENYING THE FINDINGS AND CONCLUSIONS, THE FIRM CONSENTEDTO THE ENTRY OF THE FINDINGS AND TO THE SANCTIONS.





Initiated By: NEW YORK STOCK EXCHANGE


Censure


FINE OF $125,000.00


Docket/Case Number: 2017-09-00057


Other Product Type(s): UNSPECIFIED SECURITIES

ON MAY 14, 2019, UBS FINANCIAL SERVICES INC. ("THE FIRM") AND THENYSE AGREED TO A SETTLEMENT OF THE PROCEEDING WHICH WASACCEPTED AND RESULTED IN THE JUNE 10, 2019 ISSUANCE OF A LETTEROF ACCEPTANCE, WAIVER AND CONSENT ("AWC"). THE AWC CHARGESTHAT THE FIRM VIOLATED SEC RULE 15C3-5 OF THE SECURITIESEXCHANGE ACT OF 1934 (THE "MARKET ACCESS RULE") AND NYSE RULE3110 (SUPERVISION) AND FORMER NYSE RULE 342, FROM AUGUST 2013TO JULY 2018, BY FAILING TO HAVE CERTAIN CONTROLS IN TWO OF ITSORDER MANAGEMENT SYSTEMS THAT WERE REASONABLY DESIGNED TOPREVENT THE ENTRY OF CERTAIN ORDERS AS REQUIRED BY THEMARKET ACCESS RULE. IN PARTICULAR, THE AWC FOUND THE FIRM'SMARKET ACCESS CONTROLS WERE NOT REASONABLY DESIGNED TOPREVENT: (I) THE ENTRY OF ORDERS FOR RETAIL CUSTOMERS THATEXCEEDED APPROPRIATE PRE-SET CREDIT LIMITS, BOTH IN THE FIRM'SCONSOLIDATED ORDER ENTRY SYSTEM (COE) FROM AUGUST 2013 TODECEMBER 2014 BECAUSE DURING THIS PERIOD THE CONTROLS INPLACE WERE SOFT BLOCKS NOT SUBJECTED TO ADDITIONAL PRE-TRADECONTROLS OR SUPERVISORY REVIEW, AND FAILED TO HAVE ANY PRE-TRADE CREDIT LIMITS IN THE FIRM'S LEGACY MANUAL ORDERMANAGEMENT SYSTEM (DORS) FROM AUGUST 2013 UNTIL THAT SYSTEMWAS FULLY DECOMMISSIONED IN OCTOBER 2014; (II) THE ENTRY OFORDERS EXCEEDING APPROPRIATE SECURITY-SPECIFIC PRICE AND/ORSIZE PARAMETERS, BOTH IN COE FROM AUGUST 2013 UNTIL THE FIRM'SIMPLEMENTATION OF ADTV CONTROLS IN THAT SYSTEM IN JULY 2018, ANDIN DORS FROM AUGUST 2013 UNTIL THAT SYSTEM WAS FULLYDECOMMISSIONED IN OCTOBER 2014; AND (III) THE ENTRY OFDUPLICATIVE ORDERS IN DORS FROM AUGUST 2013 UNTIL THAT SYSTEMWAS FULLY DECOMMISSIONED IN OCTOBER 2014. WITHOUT ADMITTINGOR DENYING THE FINDINGS AND CONCLUSIONS, THE FIRM CONSENTEDTO THE ENTRY OF THE FINDINGS AND TO THE SANCTIONS.


Resolution:

Other Sanctions Ordered: NONE.

Sanction Details: UBS FINANCIAL SERVICES INC. PAID THE FINE OF $125,000 ON JUNE 19,2019.

Sanctions Ordered: CensureMonetary/Fine $125,000.00





Sanction Details: UBS FINANCIAL SERVICES INC. PAID THE FINE OF $125,000 ON JUNE 19,2019.

Firm Statement SOLELY FOR THE PURPOSE OF SETTLING THIS PROCEEDING, UBSFINANCIAL SERVICES INC. CONSENTED TO THE AWC WITHOUT ADMITTINGOR DENYING THE FINDINGS OR CONCLUSIONS IN THE AWC, EXCEPT ASTO THE NYSE JURISDICTION OVER THE FIRM AND THE SUBJECT MATTER.THE ALLEGATIONS, FINDINGS, DISPOSITIONS, AND SANCTIONS OF THEAWC ARE DESCRIBED IN ITEMS 7 AND 12.

Disclosure 3 of 457

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Initiated By: VIRGINIA STATE CORPORATION COMMISSION


Restitution


RESTITUTION TO INVESTORS UP TO THE SUM OF $288,970.20.

COST OF INVESTIGATION: $30,000.00


Docket/Case Number: SEC-2018-00029

URL for Regulatory Action: HTTP://WWW.SCC.VIRGINIA.GOV/DOCKETSEARCH#/CASEDETAILS/138828


Other Product Type(s): GOLD AND PRECIOUS METALS INVESTMENTS.

Allegations: A FORMER UBS AGENT RECOMMENDED CERTAIN GOLD & PRECIOUSMETALS SECURITIES TO CERTAIN OF HIS CLIENTS. AS A RESULT OF THEFORMER AGENT'S RECOMMENDATIONS, 18 CLIENTS CAME TO HOLD ANOVERCONCENTRATION OF SAID SECURITIES WHEN THERECOMMENDATIONS WERE NOT SUITABLE FOR SOME CLIENTS.



Resolution:


No

Sanctions Ordered: Disgorgement/Restitution

Consent




Other Sanctions Ordered: ACTUAL RESTITUTION PAID TO INVESTORS OF $288,141.00

COST OF INVESTIGATION: $30,000

Sanction Details: RESTITUTION IN THE AMOUNT OF $288,141.00 PAID TO INVESTORS.

COST OF INVESTIGATION: $30.000.00

Regulator Statement UBS WILL OFFER TO PAY UP TO THE SUM OF $288,970.20 TO UP TOEIGHTEEN IDENTIFIED CLIENTS OF THE FORMER AGENT. UBS WILL MAILAN OFFER LETTER WITHIN THIRTY DAYS OF THE ORDER AND WILLPROVIDE EACH OFFEREE SIXTY CALENDAR DAYS FROM THE DATE OF THEOFFER LETTER TO ACCEPT PAYMENT OFFERED.



Initiated By: VIRGINIA STATE CORPORATION COMMISSION




Docket/Case Number: SEC-2018-00029


Other Product Type(s): GOLD AND PRECIOUS METALS FUNDS

Allegations: IN EARLIER ORDER, DATED JANUARY 28, 2019, STATE ALLEGED A FORMERUBS AGENT RECOMMENDED CERTAIN GOLD & PRECIOUS METALSSECURITIES TO CERTAIN CLIENTS. AS A RESULT OF THESERECOMMENDATIONS, STATE ALLEGED, 18 CLIENTS BOUGHT AND CAME TOHOLD AN UNSUITABLE OVERCONCENTRATION OF SAID SECURITIES. INFINAL ORDER, DATED AUGUST 5, 2019, REPORTED HERE, STATE FINDSTHAT UBS FULFILLED THE REQUIREMENTS OF THE EARLIER SETTLEMENTORDER OF JANUARY 28, 2019, AND DISMISSED THE CASE.



Resolution:

Other Sanctions Ordered: IN STATE SETTLEMENT ORDER OF JANUARY 28, 2019, FIRM AGREED TOPAY UP TO 18 CUSTOMERS AN AMOUNT UP TO $288,970.20. BY FINALORDER DATED AUGUST 5, 2019, STATE FOUND THAT UBS FULFILLED THEREQUIREMENTS OF THE JANUARY 28, 2019 SETTLEMENT ORDER ANDDISMISSED THE CASE.


Settled




Other Sanctions Ordered: IN STATE SETTLEMENT ORDER OF JANUARY 28, 2019, FIRM AGREED TOPAY UP TO 18 CUSTOMERS AN AMOUNT UP TO $288,970.20. BY FINALORDER DATED AUGUST 5, 2019, STATE FOUND THAT UBS FULFILLED THEREQUIREMENTS OF THE JANUARY 28, 2019 SETTLEMENT ORDER ANDDISMISSED THE CASE.

Sanction Details: IN STATE SETTLEMENT ORDER OF JANUARY 28, 2019, FIRM AGREED TOPAY UP TO 18 CUSTOMERS AN AMOUNT UP TO $288,970.20. BY FINALORDER DATED AUGUST 5, 2019, STATE FOUND THAT UBS FULFILLED THEREQUIREMENTS OF THE JANUARY 28, 2019 SETTLEMENT ORDER ANDDISMISSED THE CASE.

Firm Statement IN STATE SETTLEMENT ORDER OF JANUARY 28, 2019, FIRM AGREED TOPAY UP TO 18 CUSTOMERS AN AMOUNT UP TO $288,970.20. BY FINALORDER DATED AUGUST 5, 2019, STATE FOUND THAT UBS FULFILLED THEREQUIREMENTS OF THE JANUARY 28, 2019 SETTLEMENT ORDER ANDDISMISSED THE CASE.

Disclosure 4 of 457

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Reporting Source: Firm

Initiated By: FINANCIAL CRIMES ENFORCEMENT NETWORK


Docket/Case Number: IN THE MATTER OF UBS FINANCIAL SERVICES INC., NO. 2018-03


Other Product Type(s): WIRE TRANSFERS AND JOURNALS AND FOREIGN CURRENCY

Allegations: THE FIRM CONSENTED TO THE ASSESSMENT OF A CIVIL MONETARYPENALTY FOR FAILING TO HAVE A RISK-BASED AML PROGRAM THATADDRESSED THE RISKS ASSOCIATED WITH REGARD TO BROKERAGEACCOUNTS THAT INCLUDED BANKING-LIKE SERVICES. BEGINNING IN2004, THE FIRM FAILED TO ADEQUATELY MONITOR FOREIGN CURRENCYWIRE TRANSFERS CONDUCTED THROUGH COMMODITIES ANDBROKERAGE ACCOUNTS WHICH RESULTED IN THE FIRM FAILING TOIDENTIFY AND INVESTIGATE POTENTIALLY SUSPICIOUS ACTIVITY. THEFIRM DID NOT DEVOTE SUFFICIENT RESOURCES TO ITS AML PROGRAMDURING 2004 TO APRIL 2017. THE FIRM WAS ALSO NOT PERFORMINGPERIODIC REVIEWS OF ITS CORRESPONDENT ACCOUNTS FOR FOREIGNFINANCIAL INSTITUTIONS. IN ACCORDANCE WITH FINCEN POLICY, THEFIRM ADMITTED THE FACTS SET FORTH IN THE CONSENT. FINCENASSESSED A TOTAL PENALTY OF $14.5 MILLION AND DEEMED IT SATISFIEDIF THE FIRM PAID FINCEN $5 MILLION AND $5 MILLION TO THE SEC AND$4.5 TO FINRA IN RELATED ENFORCEMENT ACTIONS.






Civil and Administrative Penalt(ies) /Fine(s)


Other Product Type(s): WIRE TRANSFERS AND JOURNALS AND FOREIGN CURRENCY


Resolution:

Other Sanctions Ordered:

Sanction Details: THE FIRM CONSENTED TO THE ASSESSMENT OF A CIVIL MONETARYPENALTY FOR FAILING TO HAVE A RISK-BASED AML PROGRAM THATADDRESSED THE RISKS ASSOCIATED WITH REGARD TO BROKERAGEACCOUNTS THAT INCLUDED BANKING-LIKE SERVICES. BEGINNING IN2004, THE FIRM FAILED TO ADEQUATELY MONITOR FOREIGN CURRENCYWIRE TRANSFERS CONDUCTED THROUGH COMMODITIES ANDBROKERAGE ACCOUNTS WHICH RESULTED IN THE FIRM FAILING TOIDENTIFY AND INVESTIGATE POTENTIALLY SUSPICIOUS ACTIVITY. THEFIRM DID NOT DEVOTE SUFFICIENT RESOURCES TO ITS AML PROGRAMDURING 2004 TO APRIL 2017. THE FIRM WAS ALSO NOT PERFORMINGPERIODIC REVIEWS OF ITS CORRESPONDENT ACCOUNTS FOR FOREIGNFINANCIAL INSTITUTIONS. IN ACCORDANCE WITH FINCEN POLICY, THEFIRM ADMITTED THE FACTS SET FORTH IN THE CONSENT. FINCENASSESSED A TOTAL PENALTY OF $14.5 MILLION AND DEEMED IT SATISFIEDIF THE FIRM PAID FINCEN $5 MILLION AND $5 MILLION TO THE SEC AND$4.5 TO FINRA IN RELATED ENFORCEMENT ACTIONS.

Sanctions Ordered: Monetary/Fine $5,000,000.00

Consent

Disclosure 5 of 457

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Allegations: SEC ADMIN RELEASE 34-84828, IA RELEASE 40-5075 / DECEMBER 17, 2018:THE SECURITIES AND EXCHANGE COMMISSION ("COMMISSION") DEEMS ITAPPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLICADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, ANDHEREBY ARE, INSTITUTED PURSUANT TO SECTIONS 15(B) AND 21C OF THESECURITIES EXCHANGE ACT OF 1934 ("EXCHANGE ACT") AND SECTION203(E) OF THE INVESTMENT ADVISERS ACT OF 1940 ("ADVISERS ACT")AGAINST UBS FINANCIAL SERVICES INC. ("RESPONDENT" OR "UBSFS").THE COMMISSION FINDS THAT A REGISTERED BROKER-DEALER ISREQUIRED TO FILE A SUSPICIOUS ACTIVITY REPORT ("SAR") WHEN ITKNOWS, SUSPECTS, OR HAS REASON TO SUSPECT THAT CERTAINTRANSACTIONS (1) INVOLVE FUNDS DERIVED FROM ILLEGAL ACTIVITY, (2)INVOLVE THE USE OF THE BROKER-DEALER TO FACILITATE CRIMINALACTIVITY, (3) ARE DESIGNED TO EVADE ANY REQUIREMENT OF THE BANKSECRECY ACT ("BSA"), OR (4) HAVE NO BUSINESS OR APPARENT LAWFULPURPOSE. THIS MATTER CONCERNS RESPONDENT'S VIOLATIONS OFSECTION 17(A) OF THE EXCHANGE ACT AND RULE 17A-8 THEREUNDER INCONNECTION WITH ITS FAILURE TO FILE SUSPICIOUS ACTIVITY REPORTS("SARS") IN COMPLIANCE WITH THESE REPORTING REQUIREMENTS. ASWITH SOME BROKER-DEALERS, RESPONDENT, IN ADDITION TO BUYINGAND SELLING SECURITIES, OFFERED ITS CUSTOMERS OTHER SERVICES,SUCH AS WIRES, INTERNAL TRANSFERS BETWEEN ACCOUNTS("JOURNALS"), CHECK WRITING, ATM WITHDRAWALS, CASH ADVANCES,AND ACH TRANSFERS. BY OFFERING THESE SERVICES, UBSFS WASSUSCEPTIBLE TO THE RISKS OF MONEY LAUNDERING ASSOCIATED WITHTHESE SERVICES.FROM JANUARY 2011 THROUGH MARCH 2013 (THE "RELEVANT PERIOD"),RESPONDENT HAD AN ANTI-MONEY LAUNDERING ("AML") PROGRAM THATWAS NOT REASONABLY DESIGNED TO ACCOUNT FOR THE RISKSASSOCIATED WITH THESE ADDITIONAL SERVICES USED BY CUSTOMERSIN THEIR RETAIL BROKERAGE ACCOUNTS. BECAUSE OF THEDEFICIENCIES DETAILED BELOW, RESPONDENT DID NOT ADEQUATELYMONITOR FOR, DETECT, AND REPORT SUSPICIOUS ACTIVITY FOR CERTAINTRANSACTIONS OR PATTERNS OF TRANSACTIONS OCCURRING IN NON-RESIDENT ALIEN ("NRA") CUSTOMER ACCOUNTS IN A SAN DIEGO,CALIFORNIA BRANCH OFFICE.AS A RESULT OF NOT FILING SARS REPORTING THE SUSPICIOUSMOVEMENT OF FUNDS THROUGH CERTAIN OF ITS NRA ACCOUNTS, ASDESCRIBED ABOVE, RESPONDENT WILLFULLY VIOLATED EXCHANGE ACTSECTION 17(A) AND RULE 17A-8 THEREUNDER.


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UBS FINANCIAL SERVICES INC. · 2020-03-07 · UBS FINANCIAL SERVICES INC. CRD# 8174 SEC# 8-16267...

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