UBS to pay $23.3M customer settlement

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.