UBS to Pay $25 Million SEC Penalty Over Complex Options Strategy

UBS Group AG agreed to pay the US Securities and Exchange Commission $25 million in penalties to settle allegations that some its advisers recommended a complex investment strategy involving options that may not have been in their clients’ best interest.

UBS investment advisers marketed and sold YES, or Yield Enhancement Strategy, for about a year starting in February 2016 even though some didn’t understand the risks themselves, according to the SEC. The Swiss firm’s UBS Financial Services Inc. unit failed to provide adequate training and when investors lost money both money managers and clients said they were surprised.

The firm, ...