The Financial Services Authority (FSA) has fined UBS £9.45m for failures in the sale of the AIG Enhanced Variable Rate fund.
These failures led to UBS customers being exposed to an unacceptable risk of an unsuitable sale of the fund. UBS also failed to deal properly with complaints from customers about sales of the fund, the FSA found. Between 1 December 2003 and 15 September 2008, UBS sold the fund to 1,998 high net worth customers, with initial investments totalling approximately £3.5bn. The fund invested in financial and money market instruments but, unlike a standard money market fund, it sought to deliver an enhanced return by investing a material proportion of the fund's assets in asset backed secu...
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