Wealth management clients in Hong Kong and Singapore may have been overcharged, UBS said, adding that it is working with authorities and intends to reimburse affected customers.
UBS claimed that it had identified and reported instances in which its global wealth management clients in Hong Kong and Singapore «may have been charged inappropriate spreads» for bond transactions between 2008 and 2015.
«UBS intends to reimburse affected customers on a basis agreed with the relevant authorities,» the bank said in its third quarter report. «UBS expects the relevant authorities will subject UBS to reprimands and fines as a result of their investigations.»
Despite the regulatory worries, Asia continues to be a primary growth driver for the bank, as evidenced by the latest figures. UBS’s global wealth management business posted net new asset of $10.9 billion in Asia, boosting the region’s total invested assets to $420 billion.
