Nashville (Tenn.) & Davidson County Metropolitan Council last night approved by voice vote a $10.3 million settlement with UBS PaineWebber and its consultant, William Keith Phillips, who advised on investments for the Metro Benefit Boards $1.3 billion pension fund. The settlement stems from a KPMG audit that found inherent conflicts of interest in PaineWebbers consulting, including its soft dollar and directed brokerage arrangements.
The council was required to approve the settlement, which requires UBS PaineWebber to pay $10 million to the pension fund and $300,000 to the Metro law department. Karl F. Dean, Metro government director of law, said he notified UBS PaineWebber today to wire the full payment of the settlement immediately. UBS PaineWebber officials couldnt be reached for comment. Mr. Phillips now works as a consultant at Morgan Stanley.