UBS fined £9.45m for AIG fund sale failings

Laura Miller
clock

The Financial Services Authority (FSA) has fined UBS £9.45m for failures in the sale of the AIG Enhanced Variable Rate fund.

These failures led to UBS customers being exposed to an unacceptable risk of an unsuitable sale of the fund. UBS also failed to deal properly with complaints from customers about sales of the fund, the FSA found. Between 1 December 2003 and 15 September 2008, UBS sold the fund to 1,998 high net worth customers, with initial investments totalling approximately £3.5bn. The fund invested in financial and money market instruments but, unlike a standard money market fund, it sought to deliver an enhanced return by investing a material proportion of the fund's assets in asset backed secu...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Ten Schroders funds red flagged due to underperformance

Ten Schroders funds red flagged due to underperformance

Assessment of Value report shows

Linus Uhlig
clock 29 April 2025 • 3 min read
Did the bond market cause Trump's tariff U-turn?

Did the bond market cause Trump's tariff U-turn?

90-day pause on tariffs introduced on ‘Liberation Day’

Laith Khalaf
clock 24 April 2025 • 3 min read
RLAM implements Sustainability Focus label across £11bn portfolio range

RLAM implements Sustainability Focus label across £11bn portfolio range

Across a mix of funds and trusts

Cristian Angeloni
clock 23 April 2025 • 1 min read