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The Tables Are Turning in Investors’ Favor in UBS Yield-Enhancement Strategy (YES) Arbitration

June 17, 2022 Blog

While UBS scored some early victories in arbitration involving the firm’s high-risk yield enhancement strategy (YES) investment product, recently the tables have turned in investors’ favor. According to Investment News, an industry executive who asked not to be named said that out of the 33 FINRA arbitration claims filed against UBS related to the YES strategy, 17 have resulted in wins for UBS while 16 have resulted in financial recoveries for defrauded investors. More importantly, however, 7 out of the last 10 cases decided have resulted in awards against UBS.

Several recent cases have resulted in awards of $1 million or more—including one award of $3.9 million. While the amount investors can recover from UBS in FINRA arbitration depends on the scope of their investment losses, many high-net-worth investors made substantial investments in the firm’s YES strategy based on the firm’s false and misleading representations.

Also notable is the fact that FINRA has allowed investors to recover their attorneys’ fees in addition to awarding compensation for their investment losses. This, combined with the recent string of successful cases, shows that FINRA arbitrators are beginning to gain a clear picture of UBS’ wrongdoing, and it provides a roadmap for defrauded YES investors who have yet to come forward.

UBS’ Defense Strategy Falls Flat

To date, one of UBS’ primary defense strategies has involved leaning on the fact that the firm made certain disclosures to prospective YES investors. While UBS claims that it disclosed the strategy’s high risk, the fact remains that the firm’s brokers failed to effectively communicate both the nature and scope of this risk so that prospective investors could truly make an informed decision.

In fact, our investigations have revealed that in many cases UBS’ brokers lacked an adequate understanding of the YES strategy to explain it effectively. If UBS’ registered representatives did not understand the risks the YES strategy posed, then how could investors possibly make an informed decision? The simple answer is: They couldn’t. This argument has proven successful in several recent cases, and FINRA arbitrators have rejected UBS’ efforts to somehow place a greater burden on its customers than it placed on its own brokers.

UBS Yes Strategy Investors Still Have Time to Come Forward

Thus far, only a very small percentage of YES strategy investors who suffered fraudulent losses have come forward. As news of UBS’ arbitration losses spreads, we expect more investors to assert their legal rights by filing claims with FINRA. Since investors have up to six years to file for FINRA arbitration after being defrauded by their brokerage firms, the substantial majority of YES strategy investors still have time to file.

Our firm has handled several YES strategy investment loss claims against UBS, and we are actively representing several investors in FINRA arbitration. We encourage anyone who has suffered investment losses with UBS’ yield enhancement strategy to come forward. Even investors who are unaware that they were defrauded may have claims, and our lawyers can review UBS’ relevant disclosures to determine whether individual investors should pursue claims with FINRA.

UBS’ Arbitration Losses Continue to Strengthen YES Investors’ Claims

As UBS’ losses in YES strategy arbitration pile up, these losses are providing key insights for investors who have yet to file. The same is true of UBS’ victories—which is why these victories have waned in recent months. With FINRA arbitrators clearly signaling which arguments they will accept and which ones they won’t, investors can streamline their filings and sidestep the issues that have proven unfavorable in the past. Fortunately, in the vast majority of YES strategy arbitration, the facts are squarely on the investors’ side, and the key is for investors to engage experienced counsel who are familiar with the YES-related arbitration proceedings against UBS to date.

At Zamansky LLC, we now have several years of experience representing investors in YES-related arbitration against UBS. We have secured significant recoveries for our clients, and we are continuing to vigorously pursue claims against UBS for fraud. If you have suffered YES investment losses, your choice of law firm matters, and we encourage you to contact us so that we can fight for a just recovery on your behalf.

Speak with a Yield Enhancement Strategy Lawyer at Zamansky LLC

If you would like to know more about our firm’s success in UBS yield enhancement strategy arbitration, or if you would like to discuss filing a claim against UBS with a yield enhancement strategy lawyer at Zamansky LLC, we invite you to get in touch. Call 212-742-1414 or request a free consultation online to schedule an appointment today.