In this assignment, you will begin the first component of the analysis section of your final project by examining the factors that gave rise to the violation(s) in the Wealth Management at UBS case study and their consequences, both for the case company and for the broader community. You should address the following critical elements in your Milestone Two Analysis of Laws and Controls paper:
What specific laws, regulations, and/or ethical principles were violated? Were the violations statutory (criminal or civil), violations of industry guidelines, or both? Be sure to cite the relevant rules and regulations.
What type of internal and external controls did the company have in place prior to the crisis? Be sure to analyze how these controls did or did not work to balance the tensions between maximizing profit and upholding legal and ethical responsibilities, giving examples from the case study.
Were these controls compliant with current regulations for mitigating fraud or other unethical behaviors? Why or why not? Be sure to cite the relevant regulations in your response, including any differences between U.S. and international reporting requirements.
Why were external regulations insufficient to ensure legal and ethical behavior in this case? Justify your response. For example, do some regulations carry more weight than others? How do companies guard against activities that are not illegal but are still unethical? What role does responsible self policing play in fostering financial ethics?
Sample Solution
