SEC says UBS to return ARS money to investors

WASHINGTON (Reuters) - Swiss bank UBS AG (UBSN.VX) reached a preliminary agreement with U.S. securities regulators and will return $8.2 billion to investors who bought auction rate securities, the U.S. Securities and Exchange Commission said on Friday.

UBS, which reached a deal with Massachusetts and New York and agreed to pay $150 million to settle charges it misled investors, will begin the process of restoring $10.3 billion in liquidity to some 1,000 institutional investor accounts, the SEC said.

(Reporting by Rachelle Younglai, editing by Leslie Gevirtz)