Dimond Kaplan & Rothstein, P.A. partner and attorney Jeffrey Kaplan was featured in The Wall Street Journal When Failure Is an Option: A Trading Strategy Soaks Investors highlighting the pitfalls of the UBS Yield Enhancement Strategy which recently led to investor losses and an uptick in claims against the bank.
From the article:
YES, whose holdings peaked around $6 billion in mid-2018, effectively borrows against clients’ holdings at UBS and uses the proceeds to trade options. The product is akin to a margin loan against existing holdings; losses could compel an investor to put in extra cash or securities.
Although clients say UBS financial advisers told them the strategy was conservative, in reality it often embedded risky bets that markets would stay placid—gambles on which many investors lost 20% or more. The Securities and Exchange Commission is looking into how it was marketed.
The SEC declined to comment. UBS didn’t respond to questions about a regulatory inquiry.
Jeffrey Kaplan, an attorney at Dimond Kaplan & Rothstein in Miami, says regulators from the SEC have recently interviewed several of his clients about whether UBS “understated the risks and oversold the safety” of YES.
In the end, the lesson of YES isn’t “maybe.” Whenever you hear an investment pitch that talks up returns and downplays risks, just say no.
Read more from the article here.
Investors with UBS Yield Enhancement Strategy Losses May Have a Claim
UBS YES investors may be able to file FINRA arbitration claims to recover their losses. FINRA arbitration is private and generally more cost and time efficient than a court proceeding.
To determine if you have a case, speak with an experienced investment attorney at Dimond Kaplan & Rothstein, P.A. today. Jeffery Kaplan, partner and leading attorney has already filed over a dozen claims for clients who have lost money as a result of UBS YES.
Contact an Experienced Investment Attorney Today
If you lost money in the UBS YES program contact a Dimond Kaplan & Rothstein, P.A. attorney today for a FREE consultation. DKR represents numerous YES investors throughout the United States and has extensive experience representing investors who have lost money in risky option strategies.