HONG KONG - Hong Kong's securities watchdog, Securities & Futures Commission, has reprimanded and fined UBS Securities Hong Kong HK$1.6 million($205,655) for regulatory breaches and internal control failings relating to position limit failures, the Commission said Tuesday in a statement.

The disciplinary action followed an investigation into UBS holding of 175,697 contracts in China Construction Bank stock options on behalf of its client UBS AG London, which is in breach of the prescribed position limit of 150,000 contracts on October 18, 2011.

The Commission also found UBS failed to implement adequate internal controls to ensure that the positions it held or controlled were in compliance with prescribed limits.