UBS case shines light on proprietary index disclosures
With greater regulatory focus on proprietary indexes following UBS's $19.5 million settlement in October for making false and misleading statements in its disclosures, dealers are redoubling their efforts to shore up product governance
Eighteen days before Halloween, US structured product providers suffered a nasty fright. After years of general warnings to tighten up disclosures for products linked to proprietary indexes, the Securities and Exchange Commission (SEC) finally took action, accusing UBS of making false and misleading disclosures about the performance of one of its indexes.
The Swiss bank paid $19.5 million to settle the charges without admitting or denying them. But while the size of the settlement is a drop in
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