S. Korean Regulators Warn UBS Warburg About Research Leaks
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SEOUL — South Korean regulators issued a “severe disciplinary warning” to the country’s top foreign brokerage, UBS Warburg, today after finding it leaked market-sensitive research to investors up to six days before publishing them.
UBS Warburg files, telephone logs and e-mails revealed it leaked research on 11 firms including South Korea’s largest, Samsung Electronics, the Financial Supervisory Commission said in a statement.
It risks being forced to close its South Korean operations for at least six months if it violates rules again, FSC spokeswoman Kim Ji-ho told Reuters.
The ruling covered 15 UBS Warburg staffers and was announced together with sanctions against six staffers at Merrill Lynch & Co., also stemming from improper disclosure and violations of securities laws.
“Their sanction is one degree less severe,” the FSC spokeswoman said regarding the Merrill sanctions.
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