UBS AG

On 17 November 2005, the FSA imposed a financial penalty of £100,000 on UBS AG (UBS) in respect of breaches of Rule 5.49 of the Securities and Futures Authority Rules (the SFA Rules) and SUP 17.4R and SUP 15.61R of the FSA Rules, namely the obligations to make transaction reports to the SFA and later the FSA and to take reasonable steps to ensure that the transaction reports that it did provide to the FSA were accurate. From May 1999 to 30 November 2001, UBS contravened the requirement imposed on it to make transaction reports in respect of transactions entered on its own account or on the account of others by failing to make transaction reports at all or by failing to ensure that the transaction reports were accurate in accordance with R5.49. From 1 December 2001 to 6 October 2005, UBS contravened the requirement imposed on it to make transaction reports in respect of transactions entered into by it either on its own account or on the account of others by failing to make transaction reports at all in contravention of the requirement in SUP17.4R, and UBS failed to take reasonable steps to ensure that the transaction reports that it did provide to the FSA were accurate in accordance with SUP 15.6.1R.