SFC Reprimands And UBS Securities Asia Limited $4.5 Million In Relation To Facilitation Trading Activities
[et_pb_section bb_built=”1″ fullwidth=”on” specialty=”off” background_image=”https://www.newsoncompliance.com/wp-content/uploads/2018/03/ubs-carlyle-fund.jpg” parallax_method=”off” module_class=”blog-header” background_color=”#ffffff” _builder_version=”3.0.98″][et_pb_fullwidth_post_title title=”on” meta=”off” author=”on” date=”on” categories=”on” comments=”on” featured_image=”off” featured_placement=”below” parallax_effect=”on” parallax_method=”on” text_orientation=”center” text_color=”light” text_background=”off” text_bg_color=”rgba(255,255,255,0.9)” module_bg_color=”rgba(255,255,255,0)” use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_padding=”100px||80px|” title_line_height=”1.6em” parallax=”on” background_color=”rgba(255,255,255,0)”]
[/et_pb_fullwidth_post_title][/et_pb_section][et_pb_section bb_built=”1″ admin_label=”section” transparent_background=”off” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” custom_padding=”20px||20px|” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” module_class=”blog-content-wrapper”][et_pb_row background_position=”top_left” background_repeat=”repeat” background_size=”initial”][et_pb_column type=”2_3″][et_pb_text background_layout=”light” use_border_color=”off” module_class=”blog-text” background_position=”top_left” background_repeat=”repeat” background_size=”initial” _builder_version=”3.0.98″]
The Securities and Futures Commission (SFC) has reprimanded and fined UBS Securities Asia Limited (UBS Securities) $4.5 million for failing to put in place effective controls to record transactions and client consents in relation to its facilitation trading activities (Notes 1 & 2).
In the course of an SFC inspection in 2016 and a subsequent investigation, UBS Securities failed to provide the SFC with complete information on its client facilitation trades. In particular, UBS Securities was only able to locate client consent records for about half of the client facilitation trades it conducted between June 2015 and June 2016.
As a licensed corporation, UBS Securities is under a regulatory duty to have the resources and procedures which are needed for the proper performance of its business activities and implement them effectively. It is also expected to maintain and keep sufficient records to explain its client facilitation business.
In resolving the concerns with UBS Securities, the SFC took into account all the circumstances, including:
- the initiative of UBS Securities to bring this matter to a conclusion by cooperating fully with the SFC to resolve the regulatory concerns pertaining to the disciplinary action;
- the engagement of a reviewer to review the completeness and accuracy of the information provided by UBS Securities to the SFC;
- the introduction of an on-going supervisory review to ensure the adequacy of client consents; and
- the undertaking by the board of directors of UBS Securities of implementing effective controls to ensure that adequate records for facilitation trading are maintained and kept.
End
Notes:
- UBS Securities is licensed under the Securities and Futures Ordinance to carry on business in Type 1 (dealing in securities), Type 2 (dealing in futures contracts), and Type 4 (advising on securities) regulated activities.
- General Principle 3 (Capabilities) provides that a licensed corporation should have and employ effectively the resources and procedures which are needed for the proper performance of its business activities.
A copy of the Statement of Disciplinary Action is available on the SFC website
[/et_pb_text][et_pb_text admin_label=”Link/Source” background_layout=”light” use_border_color=”off” background_position=”top_left” background_repeat=”repeat” background_size=”initial” _builder_version=”3.0.98″]
Author: SFC
Source: SFC
[/et_pb_text][/et_pb_column][et_pb_column type=”1_3″][et_pb_code admin_label=”Right Sidebar” saved_tabs=”all” global_module=”48″]Coming Soon[/et_pb_code][/et_pb_column][/et_pb_row][et_pb_row make_fullwidth=”off” use_custom_width=”off” width_unit=”on” use_custom_gutter=”off” allow_player_pause=”off” parallax=”off” parallax_method=”off” make_equal=”off” parallax_1=”off” parallax_method_1=”off” module_class=”blog-more-articles-wrapper” background_position=”top_left” background_repeat=”repeat” background_size=”initial”][et_pb_column type=”4_4″][et_pb_text background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” background_position=”top_left” background_repeat=”repeat” background_size=”initial”]
Latest Articles
[/et_pb_text][et_pb_blog admin_label=”Latest Articles” fullwidth=”off” posts_number=”3″ show_thumbnail=”on” show_content=”off” show_more=”off” show_author=”off” show_date=”on” show_categories=”on” show_comments=”off” show_pagination=”off” offset_number=”0″ use_overlay=”off” background_layout=”light” use_dropshadow=”off” use_border_color=”off” border_color=”#ffffff” border_style=”solid” box_shadow_color=”rgba(0,0,0,0.3)” box_shadow_style=”none”]
[/et_pb_blog][/et_pb_column][/et_pb_row][/et_pb_section]