The U.S. Financial Industry Regulatory Authority today censured and fined UBS Financial Services, Inc. US$370,000, for making hundreds of late disclosures to FINRA’s Central Registration Depository of information about its brokers, including customer complaints, regulatory actions and criminal disclosures.

Those reporting violations occurred over a three-year period, from January 2002 through December 2004. It said that the firm also failed to disclose a significant number of customer complaints and filed late and inaccurate notices concerning the termination of certain brokers’ relationships with the firm.

“Investors, regulators and others rely heavily on the accuracy and completeness of the information in the CRD public reporting system – and, in turn, the integrity of that system depends on timely and accurate reporting by firms,” said Susan Merrill, FINRA executive vice president and chief of enforcement.

FINRA says that the violations may have hampered investors’ ability to assess the background of certain brokers via its public disclosure program. They also may have compromised firms’ ability to conduct background checks when making hiring decisions, reduced the ability of state securities regulators to review brokers’ transfer applications and hindered FINRA from promptly investigating certain disclosure items.

As part of the settlement, UBS agreed to conduct an internal audit to evaluate the effectiveness of its system for timely compliance with certain reporting obligations. In addition, the firm agreed that an officer of the firm will certify that such audit has occurred and that recommendations from the audit have been or will be implemented.

In settling this matter, UBS neither admitted nor denied the allegations, but consented to the entry of FINRA’s findings.