How not to sell a fund: UBS's AIG failings revealed

1. Due diligence UBS failed to conduct adequate due diligence on the fund before selling it to customers, the FSA said. As a result, the bank had insufficient understanding of the nature of the assets in the fund and the consequent risks associated with it. Furthermore, between January 2004 and August 2007, UBS failed to monitor effectively the asset composition of the fund. 2. Sales process The regulator said UBS failed to have an adequate sales process in place for the fund. UBS's advisers were not provided with adequate training on the fund, nor its features and risks. As a ...