The SEC said the payment resolves a probe into ACA ABS 2007-02, a collateralized debt obligation (CDO) that the Swiss bank created in 2007.
According to the regulator, UBS received $23.6 million in upfront payments while acquiring credit default swaps as collateral for the CDO.
The SEC said that rather than transfer the cash to the CDO, UBS kept the full amount, failed to disclose it to investors, and inaccurately represented to investors its cost of acquiring the collateral.
UBS did not admit wrongdoing in the settlement. No individuals were charged.