{"id":1729,"date":"2015-10-19T11:35:27","date_gmt":"2015-10-19T11:35:27","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2015\/10\/ubs_advisory_firms_to_pay_inve"},"modified":"2015-10-19T11:35:27","modified_gmt":"2015-10-19T11:35:27","slug":"ubs-advisory-firms-to-pay-inve","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/ubs-advisory-firms-to-pay-inve\/","title":{"rendered":"UBS Advisory Firms To Pay Investors $13M For Failure to Disclose Closed-End Fund Strategy Modification"},"content":{"rendered":"

\t\t\t\tUBS Fund Advisor LLC and UBS Willow Management LLC will pay $17.5M, including $13 million to investors that were hurt to resolve Securities and Exchange Commission charges accusing them of failing to disclose that there was a change in an investment strategy involving closed-end fund UBS Willow Fund LLC. The two UBS (UBS) <\/a>advisory firms have advised the fund. <\/p>\n

The SEC contends that from 2000 through 2008, UBS Willow Management – which was a joint venture between an outside portfolio manager and UBS Fund Advisor \u2013 invested the assets of the Willow Fund in line with the strategy discussed in marketing collateral and offering documents. However, according to the regulator’s order that instituted a settled administrative proceeding, in 2008, the fund advisor changed tactics and went from focusing on investments in debt put out by beleaguered companies to buying big amounts of credit default swaps<\/a>. <\/p>\n

The Willow fund started to sustain huge losses because of the credit default swaps, which went from 2.6% of the fund’s market value in ’08 to over 25% by March ’09. The fund was eventually liquidated three years later. <\/p>\n

The SEC says that UBS Willow Management failed to notify its board of directors or the fund’s investors that the investment strategy had changed. For a time, a marketing brochure given to prospective investors misstated the strategy of the fund, and letters to investors included misleading or false information about credit default swap exposure.
\n Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

UBS Fund Advisor LLC and UBS Willow Management LLC will pay $17.5M, including $13 million to investors that were hurt to resolve Securities and Exchange Commission charges accusing them of failing to disclose that there was a change in an investment strategy involving closed-end fund UBS Willow Fund LLC. The two UBS (UBS) advisory firms […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3743,3752,3755],"tags":[],"class_list":["post-1729","post","type-post","status-publish","format-standard","hentry","category-credit-default-swaps","category-financial-firms","category-ubs"],"yoast_head":"\nUBS Advisory Firms To Pay Investors $13M For Failure to Disclose Closed-End Fund Strategy Modification — Investor Lawyers Blog — October 19, 2015<\/title>\n<meta name=\"description\" content=\"UBS Fund Advisor LLC and UBS Willow Management LLC will pay $17.5M, including $13 million to investors that were hurt to resolve Securities and Exchange — October 19, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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