Have You Suffered Losses with the YES Strategy? UBS Is Currently Facing Multiple Investor Fraud Claims Related to Its Yield Enhancement Strategy.
Like most large investment brokerage firms, UBS has faced its fair share of scrutiny in recent years. While the firm has been the subject of investigations targeting a broad spectrum of allegations, since 2018, much of the focus has been on its brokers’ sales practices related to the UBS YES strategy.
Did You Lose Money Investing in the YES Strategy with UBS?
UBS began promoting its yield enhancement strategy (YES) in 2015. In doing so, it primarily targeted wealthy investors, promising to provide diversification and stable returns through an innovative options strategy.
Essentially, how the YES strategy works at UBS is that it involves a bet that the market will neither rise above nor dip below a specified threshold. As long as the market stays in this narrow band for a long enough period, then investors can collect a profit (in the form of an “option premium”)—and they can do this over and over again to consistently generate returns regardless of whether the market fluctuates slightly up or slightly down.
For most investors, this worked until 2018.
Then, the market crashed. Suddenly, the stability that is essential to the success of the UBS YES strategy was gone. Yet, UBS’ brokers continued to push the strategy, and its wealthy investors continued to lose money while the firm continued to generate fees on every option sale. With the turmoil of 2020, many of UBS’ wealthy investors are now millions of dollars in the hole.
Our Lawyers are Actively Pursuing Fraud Claims Against UBS Related to Its YES Strategy
At Zamansky LLC, we are actively representing dozens of investors who have lost well over $120 million due to investing in the UBS YES strategy. We are pursuing these lawsuits in FINRA arbitration—a forum explicitly designated for investors who have fraud claims against their brokers and brokerage firms. Our investigations have revealed that UBS’ brokers knowingly misled investors about the YES strategy, inflating the upside while obscuring the details of the substantial risks involved.
Under the Securities Act of 1933 and the Securities Exchange Act of 1934, brokers and brokerage firms owe various legal duties to their clients. These include an obligation to provide their clients with complete and accurate information about the investment products they recommend. In many cases, it appears that not only did UBS’ brokers conceal the risks of the YES strategy, but they also failed to adequately disclose its fee structure—which allowed for substantial commissions regardless of how clients’ YES investments performed.
Talk to a Securities Fraud Lawyer About Your UBS Yes Strategy Losses
If you have lost money investing in UBS’ YES strategy, our lawyers can seek to recover your losses in FINRA arbitration. For more information, call us at 212-742-1414 or tell us how we can reach you online today.