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Welcome to the UBS Puerto Rico Fair Fund Website


SETTLEMENT UPDATE
Please note the Claims Bar Date has been extended to May 19, 2018. If you already filed a Claim Form in response to the November 9, 2017 original mailing, you DO NOT need to submit a new Claim Form.


If you purchased certain UBS Financial Services Incorporated of Puerto Rico (“UBSPR”) non-exchange-traded closed-end funds (“CEFs”) through proceeds received from a UBSPR non-purpose line of credit (“LOC”) during the period of time from January 1, 2011 through September 13, 2013, you may be eligible to share in the distribution of the $15,025,000 fund.

YOUR LEGAL RIGHTS AND OPTIONS 
Submit A Claim This is the only way to be considered for payment. 
Do Nothing You will not be considered for payment.
Deadline Claim Forms must be Postmarked no later than May 19, 2018.

The following is a summary of information presented in more detail in the Fair Fund Notice which you can access by clicking the Fair Fund Notice link on the left.  Since this is just a summary, you should read the full Fair Fund Notice for additional details. 

DETAILS OF THE SEC'S SETTLEMENT WITH DEFENDANTS
On September 29, 2015, the Commission issued separate, but related, settled Orders Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions (collectively, the “Orders”) against UBS Financial Services Inc. of Puerto Rico (“UBSPR”) and, UBSPR Guayanabo branch office manager, Ramiro L. Colon, III (“Colon”) (collectively, the “Respondents”). Each Order found that UBSPR, through Colon, violated Section 15(b)(4)(E) of the Securities Exchange Act of 1934 (“Exchange Act”) by failing to supervise Jose Ramirez, Jr., a registered representative and associated person of UBSPR and UBSPR’s Guayanabo branch, who engaged in conduct that violated the anti-fraud provisions of Section 17(a) of the Securities Act of 1933 (“Securities Act”) and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.

According to the Orders, from approximately 2011 through 2013, Ramirez made material misrepresentations and omissions to customers and engaged in a fraudulent scheme involving the offer and sale of approximately $50 million of certain UBSPR affiliated, non-exchange-traded, closed-end funds (“CEFs”). Ramirez solicited certain customers to improperly use proceeds from non-purpose lines of credit (“LOCs”) offered by UBSPR’s banking affiliate, UBS Bank USA (“BUSA”), to purchase additional shares of UBSPR CEFs. According to UBSPR’s Order, UBSPR lacked procedures and systems to prevent and detect the broker’s misconduct. On at least two occasions, UBSPR was made aware that Ramirez may have been violating internal policy, but UBSPR’s procedures failed to address reasonable follow-up for violations of the policy.

Respondent UBSPR was ordered to pay disgorgement of $1,188,149.41, prejudgment interest of $174,196.97, and a $13,637,653.62 civil money penalty; Colon was ordered to pay a $25,000 civil money penalty. UBSPR and Colon paid the amounts ordered in their respective orders, which total $15,025,000 (the “Fair Fund”). The UBSPR Order created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, for the amounts ordered. The Fair Fund is subject to the continuing jurisdiction and control of the Commission and the Fair Fund is currently on deposit at the United States Department of Treasury’s Bureau of the Fiscal Service (“BFS”) for investment.

These funds, together with any interest and income earned thereon, calculated after deductions expended or to be expended for taxes and fees (the “Net Fair Fund”), will be distributed in accordance with the provisions of the Distribution Plan to the Eligible Claimants as defined below who file timely and valid Claim Forms following the procedures set forth in the Fair Fund Notice and on the Claim Form.

HOW TO RECEIVE A DISTRIBUTION PAYMENT
To qualify for a Distribution Payment, you must file a signed Claim Form with the Fund Administrator postmarked on or before the Claims Bar Date, May 19, 2018.  A Claim Form was included with the Fair Fund Notice or you may download a Claim Form via the Claim Form link on the left.

Be sure to complete all information requested on the Claim Form that applies to you, sign the form and include sufficient documentation reflecting your withdrawals from your UBSPR LOC account, holdings, purchases and sales of UBSPR CEFs as requested.  If you do not provide all required information and sign the Claim Form, your claim may be rejected.

FURTHER INFORMATION
Further information regarding the Distribution, the Fair Fund Notice and how to file your Claim Form may be obtained by contacting the Fund Administrator or through reading the Fair Fund Notice and Claim Form that can be accessed through the Fair Fund Notice and Claim Form links on the left.

Disclaimer

IMPORTANT: THIS SITE IS NOT OPERATED BY UBS FINANCIAL SERVICES INCORPORATED OF PUERTO RICO. THIS SETTLEMENT IS SUPERVISED BY THE SEC. THE FUND ADMINISTRATOR HANDLES ALL ASPECTS OF CLAIMS PROCESSING. THIS IS THE AUTHORIZED WEBSITE FOR THIS SETTLEMENT. PLEASE DO NOT RELY UPON OTHER SITES THAT SET OUT DIFFERENT AND UNAUTHORIZED INFORMATION.

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