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UBS unit to pay $34m in settlements over Puerto Rico bond funds

Settlements stem from former broker who had customers invest borrowed money in the funds

UBS unit to pay $34m in settlements over Puerto Rico bond funds

A unit of UBS agreed to pay roughly $34 million in settlements with US regulators regarding the sale of Puerto Rico bond funds that plunged in value in recent years.

Tuesday's settlements come as Puerto Rico's financial crisis is drawing increased scrutiny from US lawmakers and regulators. A measure to establish more robust federal oversight over Puerto Rico's mutual fund industry was introduced in Congress last week and a Senate committee held a hearing on Puerto Rico's financial problems on Tuesday.

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