MIAMI, May 28, 2019 (GLOBE NEWSWIRE) — National securities law firm Dimond Kaplan & Rothstein, P.A. (http://www.dkrpa.com) has filed additional FINRA arbitration claims against UBS Financial Services, Inc. to recover more than $1 million lost in UBS’s “Yield Enhancement Strategy” or the “YES” options program. The claims focus on UBS’s alleged misrepresentations of the risks of the YES options program and UBS’s alleged failure to adequately supervise the YES options program.
UBS Yield Enhancement Strategy Exposed Investors to Great Risk
The YES program is a complex options strategy that UBS recommended to high-net worth investors who sought conservative income. Notwithstanding that UBS marketed its YES program as a low-risk income strategy, the options strategy actually exposed investors to significant risk.
While options can be very risky, some brokerage firms claim they can combine various options in a way that will protect investors from losses. With its YES options program, UBS represented that it would buy and sell puts and calls on the S&P 500 Index to safely generate income. Central to its marketing, UBS represented that the options strategy would provide investors with downside protection. But YES investors did not get the safe income strategy that they were promised.
When the securities markets experienced significant volatility in December 2018, YES investors suffered losses that were far greater than they were led to believe were possible. Thereafter, UBS blamed investors’ losses on the market volatility. But UBS’s marketing materials for YES claimed that UBS devised the strategy to “prepare for unexpectedly volatile market conditions.” As such, it appears that UBS’s excuse is nothing more than an after-the-fact attempt to avoid taking 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 the Yield Enhancement Strategy you should contact a lawyer who has experience representing investors in investment fraud and broker negligence cases.
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.