UBS Settles ‘Hedge Fund Hotel’ Charges

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.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note