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You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

Global securities company not exactly learning its lesson

Actually, readers noting today's blog post headline on securities fraud might conclude after reading the information below that it's really Finra that hasn't learned its lesson.

And here's why: Swiss global financial services company UBS Group AG was recently fined by the agency -- the Financial Industry Regulatory Authority, tasked with overseeing most broker activity in the United States -- for ripping off a select group of mutual-fund investors.

For the third time.

And for the same reason.

Generally, when the punishment fits the crime, most offenders are wary of recommitting the same offense. If the repercussions were sufficiently adverse the first time … .

Well, apparently they weren't, given that we're seeing a public displaying of similar facts for the third time in the past decade.

Here's the deal: A fair amount of UBS brokers seem to have a real penchant for not applying discounts/waivers on front-end sales charges in cases where investors are entitled to receive them when purchasing mutual funds.

And that is like a slow leak of money from where it should rightly be (in customers' wallets) to where it lawfully should not be residing (in UBS coffers).

Finra first brought that to the attention of UBS in 2004, when it fined the company $2.3 million for not crediting eligible investors with discounts. It revisited that discussion and levied new fines in 2008 when it once again noted that initial sales charges were being inappropriately levied upon some customers.

And just last week material details emerged from a settlement pact reached between Finra and UBS on -- once again -- a similar fact pattern.

Reportedly, about 2,700 investors were bilked in the latest wrongdoing.

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