In an article recently published by The Wall Street Journal (“WSJ”), the WSJ discussed how UBS’s Yield Enhancement Strategy (YES) has resulted in millions in client losses and over two dozen customer complaints. The strategy was pitched as “low-risk” to some of UBS’s wealthiest clients. In FINRA arbitration claims, investors have alleged that the investment strategy was complicated and not suitable for them. Unfortunately, the large swings in the late 2018 market caused investors to risk significant amounts under the YES strategy.
Investors allege in Financial Industry Regulatory Authority (FINRA) arbitration claims that UBS advisors recommended the high-fee, high-risk strategy to boost returns on their portfolios, selling it as a neutral or safe option for investors. According to insiders, investment strategies like YES are believed to be a safe bet in a market with low volatility. But with higher volatility that occurred at the end of 2018, the YES strategy generated significant losses to investors with the strategy. According to WSJ reporting, some customers experienced losses exceeding 13%” in a single month.
According to publicly available documents, UBS has been cited numerous times by regulatory agencies. UBS agreed to settlements with the Securities and Exchange Commission, U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) and FINRA regarding alleged federal law violations over the course of the last decade.
If UBS recommended the Yield Enhancement Strategy (YES) strategy to you and you have suffered losses, you might be entitled to recovery through a FINRA arbitration. The attorneys at Levin Law are here to help. Financial advisors have a duty to disclose the real risk associated with investment strategies and to recommend only suitable investments. Contact Levin Law today at (305) 402-9050 to get your case started. Our attorneys are standing by and offer a free case evaluation.