UBS settles case for $23.3 million
From Times Wire Services
UBS agreed to pay $23.3 million to settle allegations it steered customers into unsuitable fee-based accounts, New York Atty. Gen. Andrew Cuomo said Monday.
The state accused UBS in December of improperly shifting customers into accounts that charge fees based on assets. Such accounts produce a more stable stream of revenue than commissions.
The Switzerland-based financial services company will reimburse customers a total of $21.3 million and pay a $2-million penalty, Cuomo said.
UBS denied that it switched customers into unsuitable accounts and said it settled to avoid protracted litigation. The company also said Cuomo mischaracterized its InSightOne fee-based brokerage program.
