UBS AG

The Financial Services Authority (the 'FSA') imposed a financial penalty of £160,000,000 on UBS AG ('UBS') of 1 Finsbury Avenue, London, EC2M 2AN. The FSA's action took effect on 19 December 2012 and a copy of the Final Notice, which sets out the reason for the action is displayed on the FSA's website and can be accessed via the following link: http://www.fsa.gov.uk/static/pubs/final/ubs.pdf The London Interbank Offered Rate ('LIBOR') and the Euro Interbank Offered Rate ('EURIBOR') are benchmark reference rates fundamental to the operation of both UK and international financial markets including markets in interest rate derivatives contracts. The integrity of benchmark reference rates such as LIBOR and EURIBOR is therefore of fundamental importance to both UK and international financial markets. Between 1 January 2005 and 31 December 2010 (the 'Relevant Period'), UBS breached Principles 3 and 5 of the FSA's Principles for Businesses through misconduct relating to the calculation of LIBOR and EURIBOR. UBS, acting through its managers and employees sought to manipulate certain LIBOR currencies and EURIBOR during the Relevant Period. They did so in connection with the submission of rates that formed part of the calculation of LIBOR and EURIBOR. UBS, through four of its Traders, colluded with interdealer brokers in co-ordinated attempts to influence JPY LIBOR submissions made by Panel Banks. In addition, UBS through one of its Traders also colluded with JPY LIBOR Panel Banks directly. UBS's misconduct undermined the integrity of those benchmark reference rates.