Wealthy investors have suffered substantial losses with the UBS yield enhancement strategy. While UBS brokers pitched the strategy as a low-risk opportunity for investors to increase their overall returns, it ended up costing investors many investors hundreds of thousands or millions of dollars. Many of these investors are now seeking to recover their losses through FINRA arbitration—and many have already succeeded in recovering their losses from UBS.
What Do You Need to Know if You Invested in the UBS Yield Enhancement Strategy?
If you lost money with the UBS yield enhancement strategy, here are five critical facts you need to know:
1. The UBS Yield Enhancement Strategy was Not a Low-Risk Investment
The UBS yield enhancement strategy was not a low-risk investment. The strategy relied on market stability; and, while this might seem low-risk at first blush, the risks become clear when you examine the strategy in detail. The margin of error with the yield enhancement strategy is extremely small; and, since the strategy involves options purchases, investors are left without any underlying assets when the strategy fails.
2. UBS Brokers Knew (or Should Have Known) of Its Risks
When the market became volatile heading into 2019, the risks of the UBS yield enhancement strategy should have been obvious to the firm’s brokers. Many of UBS’ brokers were aware of the risks involved with the firm’s yield enhancement strategy, yet they continued recommending it to their wealthy clients. Those who weren’t aware should have been aware, as they were advising their clients to put hundreds of thousands or millions of dollars at risk in many cases.
3. UBS and Its Brokers Profited Regardless of the Strategy’s Success or Failure
While the UBS yield enhancement strategy was high-risk for investors, it offered guaranteed returns for the firm and its brokers. Brokers earned commissions from investors’ options purchases regardless of the strategy’s success or failure. The more times investors restarted the strategy, the more UBS and its brokers earned—and this is a big part of the reason why brokers recommended the strategy without regard to the risks it entailed.
4. UBS Brokers Provided Unsuitable Investment Advice to Many of Their Wealthy Clients
Based on these facts, it is clear that UBS brokers provided unsuitable investment advice to many of their wealthy clients. This is a violation of these brokers’ duties under federal securities laws, and this means that many yield enhancement strategy investors are entitled to recover their losses from UBS.
5. UBS Yield Enhancement Strategy Investors are Recovering Their Losses Through FINRA Arbitration
In fact, several UBS yield enhancement strategy investors have already succeeded in recovering their losses through FINRA arbitration. Our lawyers are actively representing UBS investors across the country in FINRA arbitration, and investors who have not yet filed claims still have time to do so.
Talk to a UBS Yield Enhancement Strategy Lawyer in Confidence
If you would like to speak with a lawyer about recovering your UBS yield enhancement strategy losses, we encourage you to contact us promptly. Call 212-742-1414 or contact us online now for a free and confidential consultation.