The violations are said to have involved more than 330 million trade confirmations issued between February 2014 and November 2024, which contained misleading or incomplete disclosures regarding average trade prices.

FINRA found that UBS either incorrectly indicated that a trade price “may” be an average price when it was not or failed to disclose that the price shown was indeed an average price.

FINRA said that despite its initial warning in 2014, UBS Financial Services did not fully address the deficiencies until November 2024.

They explained that the discrepancies emerged from the bank’s use of a trade allocation system that handled both average-price and single-price transactions.

The resulting confirmations reportedly misled investors about the nature of their trades, raising compliance concerns under the Securities Exchange Act of 1934 and FINRA’s own rules.

In addition to the trade confirmation failings, FINRA cited UBS Financial Services for supervisory lapses. They stated that the firm did not establish adequate systems or written supervisory procedures to ensure accurate trade confirmations, nor did it sufficiently review trade confirmations for compliance.

UBS accepted the penalty without admitting or denying the allegations. The settlement includes a censure alongside the monetary fine.

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