HK SFC UBS Asia $4.5mn Fine

On Mar. 21, HK SFC fined UBS for facilitation of trading activities.

  • Fined UBS securities Asia Limited $4.5mn for failing to maintain effective controls.

Alleged Violations

  • Deficiencies involve record keeping of designation of trades as being 'facilitation'.
  • UBS failed to provide complete information of client consent for facilitation trades.
  • In 2015-16, UBS only able to locate consent records on about half of trade clients.
  • To record transactions and client consents, related to facilitation trading activities.

Facilitation Records

  • High percentage of the client facilitation trades at firm was done via sales traders.
  • Records from UBS could not readily identify, if specific trade was being facilitated.
  • Client consent records were missing as there was no central repository for storing.
  • Records could only be located by the retrieval or recollection of individual traders.


  • Amount took account of firm fully cooperating to resolve concerns from discipline.
  • Engaged reviewer to assess firm's completeness, and accuracy of the information.
  • Introduced on-going supervisory review to ensure the adequacy of client consents.
  • Board undertaking to ensure trading records, are adequately maintained and kept.