UBS will pay $100,000 to settle charges in Massachusetts that it failed to disclose that it gave hedge funds favors such as high-end office space in exchange for their business, according to Reuters.

The settlement closes an eight-year probe into “hedge fund hotels”, whereby start-up hedge fund managers got cheap space in high-end buildings. In return, they were expected to send their trading business to UBS.

UBS must also hire an independent consultant to review its disclosure policies and report on what steps have been taken to keep investors fully informed.

"We are pleased to have resolved this matter," a UBS spokeswoman said.