UBS employees took part in the trading of foreign exchange and precious metals using customer money without authorization and allocated losses to customers’ accounts. An internal UBS investigation estimated that as many as 50 unauthorized transactions a day were taking place at the operation’s peak.
The FSA investigation found that UBS had failed to:

manage and control the key risks, and the level of risk, created by its international wealth management business model; implement effective remedial measures in response to several warning signs that suggested the business’ systems and controls were inadequate; and provide an appropriate level of supervision over customer-facing employees.