Monday, 26 January 2015
Last updated 18 min ago
Nov 19 2010 | 6:40am ET
UBS has settled charges stemming from its “hedge fund hotel” in Boston.
The Swiss bank will pay $100,000 to end the investigation by Massachusetts regulators. UBS Securities was accused of offering posh office space in Boston’s financial district to hedge funds at less than half the market rate in exchange for their business. Those that didn’t funnel business to UBS were essentially evicted, Massachusetts Secretary of the Commonwealth William Galvin said.
UBS lacked written notices of agreement, according to Galvin, which are required by Massachusetts law.
UBS has also agreed to hire a consultant to review its disclosure policies and practices.
Galvin has been investigating hedge fund hotels for eight years. He said UBS’ practices were widespread among other banks and in other cities.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…