UBS AG was ordered by a U.S. regulator to pay nearly $11 million in fines and reimbursements to compensate investors it misled about the safety of debt issued by Lehman Brothers Holdings Inc before that bank went bankrupt.

The Financial Industry Regulatory Authority said UBS and some of its financial advisers failed from March to June 2008 to emphasize that Lehman's 100% principal-protection notes were unsecured, meaning that payment was not guaranteed.

Lehman filed for Chapter 11 bankruptcy protection on September 15, 2008.

FINRA said UBS agreed to pay a $2.5 million fine and make $8.25 million of restitution to customers. It did not admit wrongdoing in agreeing to settle.

(Reporting by Jonathan Stempel; Editing by Steve Orlofsky)