UBS Wealth Management Australia (UBS WMA) has entered into an enforceable undertaking (EU) with ASIC after compliance failures in the provision of financial advice to retail clients.
Between January 2006 and 31 March 2010, UBS WMA failed to provide Statements of Advice (SOA) to 764 retail clients who invested in a category of financial products classified by UBS WMA as structured products.
The failure to provide SOAs also extended to retail clients who invested in additional classes of financial products.
"The EU provides a speedy process of redress and compensation for UBS WMA clients who suffered loss because they were not provided with an adequate Statement of Advice," ASIC chairman Tony D'Aloisio said.
"Secondly, it gives the executives and board of UBS WMA a clear timetable within which to make improvements in the conduct of its advice business."
"Thirdly, it sends a broader message to the market that ASIC expects advisers to have proper systems in place to comply with the provisions of the Corporations Act relating to Statements of Advice," D'Aloisio said.
The EU offered by UBS WMA sets out how it intends to rectify these issues and how it will establish a claims process for clients who potentially received personal financial product advice in circumstances where a SOA was required but was not provided in accordance with the Corporations Act.
Under the EU, UBS WMA will write to the relevant clients and provide them with a claim form, which will facilitate any claim for compensation that the clients may be entitled to make, arising from the fact that UBS WMA failed to provide the required SOA.
ASIC acknowledged that UBS WMA has cooperated throughout its investigations and has already responded to the deficiencies including by undertaking a business restructure with the appointment of a number of senior executives to the business.
The EU relates to UBS WMA only and does not include the parent company UBS AG or other UBS group entities.
