UBS Financial Services Regulatory Sanctions and Lawsuit Investigation
Featured by Top Securities Fraud Attorneys, The White Law Group – The White Law Group is reviewing the regulatory history of UBS Financial Services Inc. (CRD#: 8174 / SEC#: 801-7163, 8-16267), a dual-registered broker-dealer and investment adviser headquartered in Weehawken, New Jersey. In recent years, regulators and arbitrators have issued a series of fines, censures, and awards tied to supervisory lapses, reporting failures, and sales-practice issues that have affected UBS customers nationwide.
Recent U.S. Regulatory Updates (2024–2025)
January 21, 2025 – Blue Sheets reporting errors.
FINRA censured and fined UBS Financial Services $1,100,000 after the firm submitted 12,007 Blue Sheets that misreported or failed to report data for roughly 4 million transactions, stemming from coding errors during a system migration. UBS self-reported, remediated, and resubmitted corrected data.
December 30, 2024 – Trade confirmation disclosures.
FINRA censured and fined UBS $1,100,000 for failing to accurately disclose average-price executions on millions of trade confirmations due to system errors and supervisory failures; UBS enhanced its supervisory processes as part of the settlement.
February 28, 2025 – Record FINRA arbitration award.
A FINRA panel ordered UBS Financial Services to pay approximately $92.2 million to a group of nine investors over an alleged high-risk short-selling strategy tied to Tesla stock; reporting indicates a large punitive component.
Unsuitable Short-Term Trades of Syndicate Preferred Stocks (FINRA)
December 19, 2024: FINRA censured and fined UBS Financial Services and ordered restitution/disgorgement plus interest for supervisory failures from January 2017 to December 2018. At least 22 UBS representatives or teams allegedly recommended retail clients buy syndicate preferred stocks and sell within 180 days—generating concessions/commissions while clients often sustained losses. FINRA cited violations of Rules 3110 and 2010.
Failure to Supervise Private Securities Trades (FINRA)
July 8, 2024: FINRA fined UBS $850,000 and issued a censure for inadequate supervision (Sept. 2010–July 2021). A representative steered clients to invest $7.2 million in fixed annuities from a company founded by his college friend—products not approved or offered by UBS. UBS ultimately repaid customers over $17 million in principal and appreciation.
Regulatory Actions & Arbitrations (Firm-Level Disclosures)
According to the current BrokerCheck firm report for UBS Financial Services, the firm lists 474 regulatory events, 441 arbitrations, and 5 civil events on its CRD. (Counts may change as matters are opened/closed.)
The White Law Group Files a Claim Against UBS Financial
March 23, 2022: The White Law Group filed a FINRA arbitration claim against Credit Suisse Securities, LLC and UBS Financial Services, Inc. on behalf of a Texas family, alleging common-law fraud, breach of fiduciary duty, negligence, and negligent supervision tied to unsuitable recommendations in high-risk royalty trust stocks (Hugoton Royalty Trust and Permian Basin Royalty Trust). The claim sought $1–$3 million in damages and alleged inadequate due diligence and insufficient risk disclosure.
SEC Charges Over UBS “YES” Options Strategy
June 29, 2022: UBS agreed to pay roughly $25 million to settle SEC fraud charges regarding its Yield Enhancement Strategy (YES), including a cease-and-desist order, censure, $5.8 million in disgorgement, $1.4 million in prejudgment interest, and a $17.4 million civil penalty. The SEC found UBS failed to adequately train and supervise advisors or communicate key risks to clients.
Failure to Supervise — What It Means for Investors
Broker-dealers must maintain reasonable supervisory systems to detect and prevent violations of securities laws and firm policies. When systems are inadequate—or not enforced—customers can be harmed through unsuitable recommendations, misrepresentations, unauthorized transactions, and other misconduct. In such cases, investors may have viable claims to recover losses.
How to Recover Investment Losses
If you suffered losses with UBS Financial Services or believe you were the victim of securities fraud, The White Law Group may be able to help through a FINRA arbitration claim, a private forum that can be faster and more cost-effective than court litigation.
Free consultation: (888) 637-5510 • whitesecuritieslaw.com
Frequently Asked Questions
What is UBS Financial Services?
UBS Financial Services is a global wealth management firm and FINRA-registered broker-dealer, offering investment advisory and brokerage services across the United States.
Why would a UBS broker be barred by FINRA?
Brokers can be barred for violations such as fraud, unsuitable investment recommendations, misappropriation of funds, or failure to cooperate with FINRA investigations.
What can I do if I lost money with a UBS broker?
You may be able to recover losses through a FINRA arbitration claim. Contact a securities attorney to review your potential case.
