Hedge Funds

UBS fined $54 million for mutual fund market timing


UBS Financial Services reached a $54 million settlement agreement with the New York Stock Exchange and New Jersey and Connecticut regulators with respect to charges of improperly trading mutual fund shares to benefit hedge fund clients.

UBS was also fined for failure to supervise its brokers.

According to the New York Stock Exchange, brokers in at least seven UBS branch offices engaged in deceptive market timing between January 2000 and December 2002. The brokers "used deceptive trading practices to conceal their identities, and those of their customers, to enable them to trade in mutual funds that sought to limit