The Securities Arbitration Law Firm of Klayman & Toskes, P.A., http://www.klaymantoskes.com/, continues its investigation into the Yield Enhancement Strategy (“YES”) recommended by UBS (NYSE: UBS) to its customers. The investigation focuses on the firms’ sales practices in connection with the recommendation of the high-risk YES program for customers who sought conservative investments.
High net-worth investors seeking conservative investments to preserve their principal were encouraged to participate in the YES program and were told it was a low-risk strategy to generate additional income. However, in December 2018, when the S&P 500 dropped 9.2%, UBS accounts subjected to the YES program suffered losses of 12% to 14%. (McCann, Meng and O’Neal, YES Research Paper).
UBS allegedly misrepresented the risks involved with participating in such a strategy to its investors, and these investors suffered losses they never anticipated, with losses estimated around $1 billion. UBS further misrepresented the likely profits of the YES program. (McCann) According to Dr. McCann, UBS marketing materials claimed that the YES strategy would make “the same returns if the market goes down slightly, stays flat or goes up slightly.” Pursuant to BrokerCheck reports as of October 2019, there were 48 FINRA arbitration claims filed against UBS as a result of the YES program.
The sole purpose of this release is to investigate whether the Yield Enhancement Strategy deployed by UBS was suitable for UBS investors and whether UBS misrepresented its risks. Current and former investors with accounts at UBS who participated in the Yield Enhancement Strategy, and have information relating to the manner in with the firm handled their portfolios, are encouraged to contact the attorneys of Klayman & Toskes, P.A., at (888) 997-9956, or visit our firm’s website at https://klaymantoskes.com/.
About Klayman & Toskes, P.A.
K&T is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm represents high net-worth, ultra-high-net-worth, and institutional investors, such as non-profit organizations, unions, public and multi-employer pension funds. K&T has office locations in California, Florida, New York and Puerto Rico.
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