UBS Settles Mass. 'Hedge Fund Hotel' Suit

Law360, New York (November 18, 2010, 6:43 PM EST) -- A unit of UBS AG has agreed to fork over $100,000 to settle allegations by Massachusetts regulators that the financial giant failed to disclose its “hedge fund hotel” arrangements with burgeoning hedge fund advisers.

The payout, revealed Thursday by Massachusetts Secretary of the Commonwealth William F. Galvin, brings to an end a long-running probe into the arrangements, under which startup hedge fund managers allegedly received low-rent office space, technology, and other services in high-end buildings in exchange for handing their trading business to UBS.

In addition...
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