UBS Fined $12M for System Failures Surrounding Nakes Short Selling
Nicholas Guiliano
Securities Arbitration Attorneys, 20 June 2015
UBS Securities LLC was fined $12 million and censured by the Financial Industry Regulatory Authority, or FINRA, for widespread system deficiencies and a failure to supervise that led to tens of millions of improper short sales.
The firm violated federal securities laws and FINRA rules at various times from January 2005 through March 2010, with several violations continuing through the end of 2010. The violations included improperly excepting short sales from the rules and the improper inclusion of securities in short sales that should have been off limits.
