During a two-week period, UBS had failed to follow fair valuation procedures in pricing certain illiquid fixed-income securities in the portfolios of the mutual funds, SEC said.
SEC further alleged that due to improper pricing of the securities at fair value led the investors to sell and purchase the mutual funds as well as redeem their shares based on inaccurately high NAVs.
SEC’s Chicago Regional Office director Merri Jo Gillette said that UBSGAMailed to fulfill one of its core delegated responsibilities on behalf of mutual funds it advises.
"Fortunately this misconduct was brought to light quickly, so the duration was short and the harm to investors minimal," Gillette added.
UBSGAM has agreed to pay $300,000 to settle the charges without admitting or denying the SEC’s findings. The advisory arm also accepted to a cease-and- desist order from committing or causing violations.
