UBS tightens rules for staff

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UBS is tightening its rules on how employees can trade securities for personal accounts, telling staffers it wants to prevent potential abuses.

Bloomberg News reports that the Swiss bank would be at least the third global lender to reconsider its conflict-of-interest policy for personnel who wish to invest for themselves, as opposed to for their clients. Citigroup Inc. and Goldman Sachs Group Inc. have taken similar steps, people with knowledge of the developments said last month.

The changes follow assertions by a former regulator for the Federal Reserve Bank of New York that she was fired from her job after concluding that Goldman Sachs’s policy was not in compliance with Fed rules. Banks monitor staff investments to prevent insider trading and to counter claims that they put the interests of employees ahead of clients. The New York Fed ``categorically’’ rejected the assertions.

Starting January, UBS employees will ``not be allowed to open new investment or trading positions with anyone other than approved brokers. You will be allowed to liquidate existing positions,’’ Ulrich Koerner, chief executive officer for Europe, the Middle East and Africa, told staff Wednesday in a memo obtained by Bloomberg News.

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UBS Tightens Rules on Staff Trading for Personal Accounts

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