UBS to pay $23.3M customer settlement

New York Attorney General Andrew Cuomo says the company inappropriately steered customers into its InsightOne fee-based brokerage program.


NEW YORK (CNNMoney.com) -- UBS agreed to pay $21.3 million to approximately 3,000 current and former customers, plus a $2 million penalty as part of a settlement regarding its InsightOne fee-based brokerage program.

New York Attorney General Andrew Cuomo said the company is reimbursing customers for inappropriately steering them into the fee-based accounts. UBS said Cuomo's statement mischaracterized the program and its operation and denied the allegations.

"UBS settled this case to avoid protracted litigation. InsightOne was developed to benefit clients, not as a scheme to disadvantage them," the investment bank said in a press release Monday.

UBS (up $0.64 to $62.13, Charts) shares were gaining 1.2 percent on the New York Stock Exchange. Top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.