MIAMI, June 12, 2019 (GLOBE NEWSWIRE) — National investment fraud law firm Dimond Kaplan & Rothstein, P.A. (http://www.dkrpa.com) has filed another FINRA arbitration claim against UBS Financial Services, Inc. to recover nearly $1 million that an investor lost in UBS’s Yield Enhancement Strategy or “YES” options program. The claim alleges that UBS misrepresented the risks of its YES options program and also failed to adequately supervise the YES options program.
UBS Yield Enhancement Strategy Exposed Investors to Great Risk
UBS recommended its YES options program as a low-risk, income strategy. But the program actually was a complex options strategy that exposed investors to significant risk of loss.
Options investing can be risky, but some investment professionals claim to combine options in a way that will protect investors from losses. UBS represented that its YES program involved buying and selling puts and calls on the S&P 500 Index in a way that would generate a small amount of income with little risk. Its marketing materials for YES touted “downside protection” as a central feature of the program. Unfortunately, UBS did not deliver on that promise.
Where Was the Promised Downside Protection?
Notwithstanding UBS’s promise about the safety of its YES options program, YES investors suffered large losses in December 2018 when the stock market experienced significant volatility. It has been reported that investors collectively have lost nearly $1 billion. In early 2019, UBS issued a report blaming the losses on the market volatility, notwithstanding that UBS’s marketing materials claimed that UBS devised the strategy to “prepare for unexpectedly volatile market conditions.” Apparently, UBS failed to adequately prepare for the market volatility, as it said it would do, and it now is refusing to take responsibility for investors’ losses.
Investors May Have a Claim for UBS Yield Enhancement Strategy Loss
UBS YES investors can file FINRA arbitration claims in an effort to recover their YES losses. If you lost money in UBS’s Yield Enhancement Strategy you should contact a lawyer who has FINRA arbitration experience representing investors who lost money in risky options strategies.
From its offices in Miami, Los Angeles, West Palm Beach, New York, and Naples, Dimond Kaplan & Rothstein, P.A. represents investors throughout the United States, Mexico, and throughout Latin America in stockbroker misconduct and investment fraud cases. The firm has handled a number of cases over the years involving risky options strategies and currently represents numerous UBS YES investors.