UBS Gets Warning, Temporary Nod to Run U.S. Pension Money (1)

The U.S. Labor Department is granting UBS Group AG permission to continue managing U.S. pensions unhindered for one year despite a new criminal conviction in France, while cautioning the Swiss banking giant that a future conviction anywhere in the world could jeopardize that status.

The regulator issued its warning Feb. 26 after a French court convicted UBS this month of helping French citizens stash funds in undeclared Swiss accounts. The court ordered the bank to pay more than 4.5 billion euros ($5.12 billion).

Like all parties that manage pensions overseen by the Labor Department, UBS must obtain a waiver to ...