How Investors Were Misled Into Believing the UBS Strategy Would Yield Low-Risk Returns
The UBS Yield Enhancement Strategy (YES) was supposed to be a safe investment strategy for UBS customers. The YES strategy was pitched to numerous investors as low-risk, promising predictable returns on their investment. In reality, the YES strategy caused some investors significant losses, as much as 20% in a short period of time. Earlier this year, the Wall Street Journal reported that the YES strategy “generated at least $60 million in losses for clients and more than two dozen customer complaints.”
The strategy was effectively an iron condor, an options strategy involving four different contracts. This complex investment strategy should only be utilized by sophisticated investors with an intricate knowledge of the market and call and put spreads. Unfortunately, as numerous complaints allege, financial advisors recommended the YES strategy and other risky iron condors to investors. Investors allege that brokers failed to accurately disclose the potential losses in a volatile market. During the height of market volatility, December 2018, investors lost huge with YES strategies.
Claims for damages against UBS for failing to disclose the full risks associated with the UBS Yield Enhancement Strategy when recommending it to investors are brought in Financial Industry Regulatory Authority arbitration. Mr. Levin has recovered millions on behalf of clients who have been victims of broker misconduct or investment fraud. If you have suffered losses because of a YES strategy or iron condor, contact Levin Law today for a free case consultation. Most cases are handled on a contingency-fee-basis, meaning that you would not be responsible for paying Levin Law’s attorneys’ fees unless money is recovered on your behalf.
