The Financial Industry Regulatory Authority (FINRA) has slammed a $2.5 million penalty on UBS Securities LLC, the New York-based brokerage arm of Swiss banking group, UBS.
The self-regulatory organization, which supervises brokerage firms in the United States, said UBS Securities violated Rule 204 of the US Securities and Exchange Commission’s Regulation SHO (Reg SHO).
Additionally, the brokerage’s supervisory failures to uphold Reg SHO rules within a period of nine years attracted the penalty, FINRA announced on Wednesday.
Reg SHO, a set of rules introduced in 2005, regulates the practice of short sales or the sale of borrowed securities in the United States.
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