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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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.