UBS Securities in the US has been accused by Massachusetts regulators of "dishonest and unethical" practices in its dealings with hedge fund advisors.

According to the state's securities regulator, UBS gave hedge fund advisors below-market rent, low-interest personal loans, tickets to sporting events, meals and other gifts to induce and maintain business.

"Unbeknownst to the pension funds, university endowments, charitable foundations, institutional investors and individuals who invest in hedge funds, the rewards for the hedge fund advisors come with implicit and sometimes explicit quid pro quos," said the regulator in a statement.

The regulator is seeking a censure, cease and desist order and an undisclosed administrative fine, according to the statement.