NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

UBS Financial Services Inc.
AWC/2009017976301

UBS Financial Service's registration tracking materials identified them as needing qualification examinations, but the firm did not

• did not take the necessary steps to have the employees obtain the requisite registrations and
• establish, maintain and enforce a supervisory system and/or written supervisory procedures reasonably designed to achieve compliance with the rules and regulations applicable to the registration of principals and representatives.

The Firm's procedures did not clearly assign respective registration responsibilities between the firm’s compliance department and the business unit supervisors, which resulted in communication gaps between the departments. The firm’s compliance department was not consistent in notifying supervisors about registration issues and procedures did not provide reasonable guidance as to the specific steps needed to be taken when an individual was hired or given new responsibilities affecting their registration status.  The procedures did not require that employees be given specific deadlines for testing and other actions, or provide for reasonable follow-up and review to ensure compliance.The firm sometimes permitted representatives to delay taking required exams, contributing to registration violations.

UBS Financial Services Inc. : Censured; Fined $200,000; Required to undertake a comprehensive review and testing of its supervisory system and procedures concerning compliance with applicable laws, regulations and rules relating to registration of principals and representatives in its home office; prepare a written report within 120 days detailing its review, findings, testing and recommendations and provide a copy to FINRA; implement additional recommended systems and procedures within 90 days; and certify in writing to FINRA that it has completed its review and established systems and procedures reasonably designed to achieve compliance with applicable laws, regulations and rules addressing registration of principals and representatives.

Tags: Testing