PAINEWEBBER FINED FOR FAILING TO REGISTER INVESTMENT ADVISERS

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, January 1, 1993                   TAG: 9301010133
SECTION: BUSINESS                    PAGE: A-7   EDITION: HOLIDAY   
SOURCE: Associated Press
DATELINE: BALTIMORE                                LENGTH: Medium
PAINEWEBBER FINED FOR FAILING TO REGISTER INVESTMENT ADVISERS
PaineWebber Inc. and one of its affiliates has been fined a record amount by the Maryland attorney general's office for failing to register some employees as investment advisers.
PaineWebber and its Mitchell Hutchins Asset Management Inc. affiliate agreed to pay the state $180,000 in fines and costs. The companies also resolved to correct violations of the Maryland Securities Act, Attorney General J. Joseph Curran Jr. said.
The New York-based investment firm, operating an office in Roanoke, was accused of not registering 55 brokers as investment advisers for a full year after a state law went into effect in 1990. Mitchell Hutchins also committed similar violations, Curran said.
Most of the brokers were from Maryland or had clients in the state.
PaineWebber and Mitchell Hutchins "recognize their obligations under federal and state securities laws and take them very seriously. The conduct giving rise to these charges was inadvertent," the companies said in a statement released Wednesday.
Under the 1990 law, PaineWebber was required to pay a $300 annual fee to sell investment advisory services and $50 annually for each broker engaged in those services.
Investment advisers with clients in Maryland must register with the state and must pass a test ensuring their knowledge of basic investment advisory services. They also are required to disclose any past disciplinary action against them, Lubin said.
The company came forward only after it was accused of similar violations in Virginia and was forced to pay $300,000 in fines there, she said.
"The firms have engaged their systems to help prevent this type of situation in the future," PaineWebber said. "All the alleged violations involve registration requirements and are technical in nature. These registration issues do not affect our customers in any way."

by Bhavesh Jinadra by CNB