Skip to Content

Current Status of Yield Enhancement Strategy Fraud Litigation Against UBS

January 29, 2021 Active Cases & Investigations

As much of the world focuses on moving forward in 2021, individuals who invested in UBS’ yield enhancement strategy (YES) in 2020 and prior years are continuing to face significant struggles. Many investors lost millions investing in UBS’ YES strategy; and, due to the nature of this high-risk structured investment product, these investors have no hope of recovering their losses through market factors.

However, many UBS YES investors have already succeeded in recovering their losses through FINRA arbitration. Our lawyers have represented numerous YES investors in FINRA arbitration claims against the firm, and we are continuing to represent investors in 2021. If you lost money investing in UBS’ yield enhancement strategy, you may be entitled to a financial recovery, and we strongly encourage you to speak with one of our attorneys.

UBS YES Investors Who Experienced Losses in 2020 and Prior Years Can Seek to Recover Their Losses Through FINRA Arbitration

In 2020, many UBS YES investors suffered substantial losses due to the market volatility triggered by the COVID-19 pandemic. This mirrored the losses that UBS YES investors experienced during similar periods of volatility in prior years. The UBS YES investment product uses an “iron condor” strategy to allow investors to profit off of market stability; and, while this strategy has the potential to work under normal circumstances, it fails by design when the market moves sharply in either direction.

UBS Earns Commissions and Management Fees Regardless of the Performance of Customers’ YES Investments

The UBS YES investment product relies on the purchase of multiple options with strike prices both above and below what is considered (by UBS) to be a reasonable window of market stability. As long as the market remains within this window, YES investors can profit by earning option premiums. However, if the market moves out of this window—as it did in 2018, 2019 and 2020—investors lose out. But, UBS still wins because each of the options purchased generates a commission for the firm’s brokers.

In addition to these commissions, UBS and its brokers also earn management fees of reportedly up to 1.75 percent just for “managing” investors’ YES accounts. These accounts are subject to “mandates” of at least $1 million, which serve as collateral for trades under the program. So, not only do UBS and its brokers earn multiple commissions over and over for as long as they keep customers on the firm’s YES program, but they earn management fees as well—and they do so regardless of how the YES strategy actually performs.

This just scratches the surface of potential claims related to the UBS YES strategy. We are pursuing claims based on misrepresentations and omissions, unsuitable investment recommendations, breach of fiduciary duty, unjust enrichment, and various other grounds as well.

Learn more: UBS’ Yield Enhancement Strategy (YES): What Do We Know About What Went Wrong?

Speak With an Investment Fraud Attorney at Zamansky LLC

If you have suffered losses investing in UBS’ yield enhancement strategy (YES), we encourage you to speak with one of our senior investment fraud attorneys. To schedule a free consultation, please call 212-742-1414 or contact us online today. 

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.
View More