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5 Critical Facts About the UBS Yield Enhancement Strategy

May 28, 2021 Blog

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.

Client Reviews

“Jake Zamasky and his colleagues represented me in a FINRA arbitration case against a large multinational bank and succeeded in obtaining an award for the full amount of my investment losses. I would highly recommend the Zamansky firm for their experience in securities litigation, their level of detailed research and case preparation, and their ability to effectively fight for what’s right.”

Richard R.

“Throughout my entire case, Jake Zamansky was incredibly responsive and spent time walking me through each step of the process. He is professional and worked with my challenging schedule, even meeting with me nights and on weekends. He knew exactly which turn to take when it came to my case and yet was respectful of any decisions I wanted to make resulting in a positive outcome.”

Donald A.

“Jake Zamansky and his firm represented me in a FINRA arbitration case to recover investment losses. Jake and his team were very professional and worked very hard preparing for trial and then reaching a substantial settlement of our case. I would highly recommend them.”

William E.

“Jake Zamansky represented me in a FINRA arbitration case which allowed me to recover a substantial portion of investment losses. He is truly an expert in this space and I would highly recommend him to those investors who may have been been a victim of investment fraud.”

Chris K.

“Jake and his team did a great job communicating with me throughout the process of my lawsuit. I would recommend him to anyone looking to sue UBS for unethical practices.”

Mike A.
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