The coronavirus pandemic has led to an unprecedented situation in this country. We have dealt with, and are still going through, an unimaginable health crisis. The country’s economy has also taken a sharp hit as millions of Americans have filed for unemployment, and businesses in every state continue to suffer. Unfortunately, many investors have also faced major losses over the last few months. One thing has become very clear – that some investors have suffered losses due to the negligent or willful wrongdoing of investment advisors and stockbrokers. Those who were recommended high-fee, high-risk strategies like UBS Yield Enhancement Strategy (YES) have likely sustained significant losses and just the matter of a few weeks.
Without getting too technical, a UBS YES investment strategy is a form of investing where “call” and “put” option spreads on the S&P 500 Index (SPX) are traded on a certain strategy (Iron Condor Strategy) to enhance returns when markets are relatively stable or flat. Many investors were pitched UBS YES-type investment strategies by their investment advisors as being low-risk or neutral investment options. Unfortunately, these strategies have left them open to substantial losses in light of the recent economic crash.
While most investors having incurred some losses over the last few months, those who made investments based on fraudulent or deceptive recommendations have faced the steepest declines in their portfolios. Many investors who have been led into UBS YES investment strategies they suffered losses of as much as 30% or more since the beginning of the COVID-19 crisis. As the S&P 500 has dropped from an all-time high of above 3,200 to below 2,500, the UBS YES strategy has likely yielded steep losses. In addition to these losses, the underlying bond and stock portfolio that collateralize a UBS YES strategy have also likely deteriorated significantly.
The Financial Industry Regulatory Agency (FINRA) is a non-profit organization under the supervision of the Securities and Exchange Commission (SEC). FINRA works to ensure fairness. Investment advisors, stockbrokers, and the financial institutions that employ them have a duty to make suitable recommendations to investors and to fully disclose risks associated with every recommendation they make. If these individuals and institutions fail to do so, they could be held liable for damages and losses that their investors incur. An experienced FINRA arbitration lawyer can help with this.
If you or a loved one have suffered losses after being advised to invest in UBS YES, you need to seek legal assistance as soon as possible. At Meyer Wilson we want to help you recover damages is through Financial Industry Regulatory Agency (FINRA) arbitration or a class action lawsuit. We firmly believe that financial institutions, investment advisors, and stockbrokers should be held accountable for making unsuitable recommendations, failing to disclose certain risks to investors, and overconcentrating their clients’ portfolios. Our team will thoroughly analyze the UBS YES investment strategy that you were advised to take. You can contact us by calling (614) 532-4576 or contact us online to speak confidentially with an attorney today.