UBS toughens up compliance in Australia after probe

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UBS has beefed up compliance for its Australian business after the country’s securities regulator ruled the bank’s controls covering its research department were inadequate.

Bloomberg News reports that the lender is taking steps to improve oversight of its research department and ASIC won’t take any further action, the Australian Securities and Investments Commission said in an e-mailed statement on Tuesday.

ASIC had voiced concerns that the bank’s compliance framework was inadequate for a bank of its size, the e-mail said.

UBS earlier this year defended its amendment of a research report on the planned lease of an Australian power network. A subheading in the March 17 report titled ‘Bad for the budget, good for the state’ was amended to just ‘Good for the state’ because the original was misleading, Chris Williams, head of research at the time, told a New South Wales state parliamentary inquiry in May.

The amendments prompted ASIC to investigate so-called Chinese walls that separate the research unit from other parts of the firm.

To access the complete Bloomberg News article hit the link below:

UBS Toughens Australian Research Compliance After ASIC Inquiry

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