UBS Securities LLC, the investment- banking division of Switzerland-based UBS AG, was accused by Massachusetts regulators of “dishonest and unethical'' practices in dealings with hedge-fund advisers, Bloomberg News reported.
The subsidiary, based in Stamford, Conn., gave hedge- fund advisers below-market rent, low-interest personal loans and other benefits to keep and develop business, according to a statement today by William Galvin, the secretary of the commonwealth and its top securities regulator, Bloomberg News reported.
The complaint also charges UBS with failure to supervise its employees' giving of gifts and gratuities. The action, filed with the state's Securities Division, seeks a cease-and-desist order, a censure and an undisclosed administrative fine, the statement said, Bloomberg News reported.
Doug Morris, a UBS spokesman in New York, declined to comment, according to Bloomberg News.
-New York State Society of Certified Public Accountants
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