UBS to take remedial steps after Australia regulator inquiry

[SYDNEY] UBS Securities, part of global investment bank UBS AG, will take remedial steps at its Australian research house, the corporate regulator said on Tuesday, following an investigation into its control and compliance practices.

The investigation was triggered by allegations that UBS, who was advising the partial sale of an electricity network in the country's biggest ever privatisation, removed negative parts of a supposedly independent analyst report after the state's government ordered it to do so.

The Australian Securities & Investment Commission (ASIC) said UBS acknowledged its concerns and will take "remedial steps" such as appointment of additional supervisory roles in its research department, appointment of an additional compliance resource to increase compliance coverage and ensuring staff are trained, among others.

"ASIC was concerned that UBS Securities' control framework relating to its research function, and its compliance with that framework, at the relevant times was not adequate for an investment bank of UBS' size and complexity," ASIC said in a media release on Tuesday.

In light of the remedial steps by UBS, ASIC has decided to take no ofurther action at this time. A UBS spokeswoman declined to comment.


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