UBS AG (NYSE:UBS) Initiate Measures To Curb Potential Abuse Of Employees Trading Accounts

UBS AG (NYSE:UBS) has geared to protect itself from any charges of its staff indulging in the abuse of trading accounts operated by them. The rules governing the practices of trading would not remain the same from the next year.

Tightens Rule

The UBS AG (NYSE:UBS) was tightening the rules relating to the employees trading in securities of their personal accounts, Bloomberg reported. The latest move is aimed at curbing any possible abuse by its employees.

UBS told the employees that they would not be able to open any fresh trading or investment positions with anyone they like from the next year onwards. However, they were allowed with approved brokers. This meant that there is sufficient time for the employees to unwind their current positions.

The fresh set of rules has become the order of the day for the industry. Therefore, it was not a surprise for UBS AG (NYSE:UBS) to come up with a fresh set of guidelines for its staff. The company believes that it would rather strengthen the protection for both the employees, as well as, the bank.

UBS indicated that restrictions on trading of its shares would be extended to the spouses or partners of those who have access to or handle sensitive information.

Others In The Field

UBS AG (NYSE:UBS) was not the only one bank to adopt fresh rules. It was the third bank after Citigroup Inc (NYSE:C) and Goldman Sachs Group Inc (NYSE:GS) to issue fresh guidelines. Both the American financial institutions have initiated similar actions earlier.

Citigroup would reportedly assess its conflict-of-interest guidelines for its investment bankers. On the other hand, Goldman Sachs has conveyed its employees that it was changing its policy on the conflict-of-interest to prevent investment bankers from resorting to investments in bonds and individual stocks.

German-based Fairesearch GmbH analyst told Bloomberg that banks should not create an impression that employees would be able to enrich themselves at the cost of its clients.

About the Author

Michael joined US Markets Daily in 2009 and is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments.

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