UBS Yield Enhancement Strategy

UBS YES Lawsuits Reported

The UBS Yield Enhancement Strategy (YES) has been contentious, leading to numerous lawsuits and substantial losses for investors. This complex options trading strategy, marketed by UBS Financial Services Inc. between 2016 and 2017, has drawn scrutiny from regulators and legal action from aggrieved clients.

The YES Strategy and Its Risks

The YES program involved borrowing against clients’ existing holdings at UBS and using the proceeds to trade options. While touted to enhance returns, this strategy carried significant risks not adequately disclosed to investors.

As the SEC found, UBS failed to provide proper training and oversight to its financial advisors, leading to a lack of understanding of the risks involved.

“Many a false step was made by quest. Oftentimes a person must bring order, not by virtuous argument but by virtuous conduct.” – Theodore Roosevelt

SEC Settlement and Findings

In June 2022, UBS reached a $25 million settlement with the SEC related to the YES program. The SEC order stated that UBS did not share the potential for significant risk with advisors or clients, resulting in advisors recommending unsuitable investments. 

This settlement included $5.8 million in disgorgement, $1.4 million in prejudgment interest, and a $17.4 million civil penalty to be distributed to harmed investors.

Investor Lawsuits and Arbitration Victories

Investors across the country have filed numerous FINRA arbitration claims against UBS, alleging misrepresentation, unsuitability, breach of fiduciary duty, and violations of securities laws. These claims assert that investors were not adequately warned about the high-risk nature of the YES investments, leading to severe losses.

Haselkorn & Thibaut, a prominent securities litigation firm, has achieved several notable victories in FINRA arbitrations against UBS on behalf of YES investors:

UBS Yield Enhancement Investigation & Lawsuits

Haselkorn & Thibaut,, a law firm dedicated to handling investment and security fraud cases nationwide, has initiated a formal investigation of UBS, Morgan Stanley, Credit Suisse, and Merrill Lynch, in connection with their sales policies related to Yield Enhancement Strategies (“YES”).

Matthew Thibaut, a partner with Haselkorn & Thibaut, said, “the potential claims against UBS and these other massive broker-dealer firms are nothing really new, and these matters seem analogous to the structured product cases I used to defend, particularly following Lehman Brother’s bankruptcy in September 2015. There are eerily just too many similarities to ignore.”

Investors who have lost money in UBS “yield enhancement strategies” may be able to recover losses. For a free case review, investors should call Halsekorn & Thibaut at 888-628-5590.

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