NEW YORK (Reuters) – A U.S. regulator on Wednesday fined a unit of UBS Group AG (S:) $2 million and ordered restitution for repeated failures in addressing short positions in municipal securities in a timely manner and inaccurately representing the tax status of thousands of interest payments to customers.
The Financial Industry Regulatory authority said UBS Financial Securities Inc reported 2,853 positions in municipal securities as tax-exempt when they were actually taxable, and 950 positions as taxable when they were actually tax-exempt.
FINRA said the errors appeared on customer account statements and tax forms and occurred from August 2015, when it sanctioned the Swiss bank for similar violations through December 2017. UBS did not admit or deny wrongdoing in settling.
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