UBS's private clients wait for compensation

UBS Wealth Management Australia is yet to pay much compensation to 764 clients to whom the firm sold financial products without a statement of advice.

On Saturday, The Australian newspaper reported that UBS contacted affected clients in January this year. The firm made contact in line with an enforceable undertaking provided to the Australian Securities and Investments Commission in March 2011.

The newspaper reported that "claims for compensation are in the tens of millions of dollars and UBS is believed to be playing hardball."

Assuming investors made their claims for compensation within a reasonable period of time after receiving the invitation to do so, UBS may have taken longer than the 45 days outlined in the undertaking to resolve most of the claims.