UBS Fined $15M For Shoddy AIG Fund Sales

Law360, New York (February 12, 2013, 2:13 PM EST) -- British financial regulators on Tuesday fined UBS AG £9.45 million — nearly $15 million — for improperly selling a risky American International Group Inc. investment fund that faltered during the financial crisis and for not adequately addressing customer complaints over the sales.

The U.K. Financial Services Authority said UBS failed to carry out adequate due diligence on the AIG Enhanced Variable Rate Fund, so the bank didn't fully understand the nature of the fund’s assets and its consequent risks. UBS advisers also recommended the fund to...
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