YES Turns to NO as Firms like UBS Start Investigation and Loss Recovery

UBS YES Investigation and Loss Recovery

Investing in the market can be tricky for many, especially when looking to enhance returns without significantly increasing risk. High-net-worth investors often seek strategies that promise additional yield on their investments while aiming to protect their assets against market downturns.

One such method that has gained attention is the UBS Yield Enhancement Strategy. Launched by UBS Financial Services in 2015, this strategy was introduced as a way to boost investor returns through options trading.

The UBS Yield Enhancement Strategy is an investment strategy in which short “put” and extended deeper options play a central role. It’s designed for sophisticated investors who want incremental yield from their portfolio management efforts under relatively stable or flat market conditions.

However, with a recent settlement of approximately $25 million relating to fraud charges against UBS Financial Services, it’s clear there are risks involved with such strategies.

The lawyers Haselkorn & Thibaut, P.A. ( have already started investigating multiple claims against Merrill  Lynch and UBS that reach back to January 2019. YES was sold as a supposedly “safe” way to increase or enhance yield by a few percentage points on fixed-income, cash, or other conservative portfolio assets that customers already had. It used a strategy called “iron condor options strategy” in an attempt to generate small returns at a low-risk level.

This blog post will explore these risks and their implications for high-net-worth investors and offer insights into recovery options for those who may have suffered losses due to investing in YES.

Stay tuned for essential guidance on navigating these complex financial waters.

Key Takeaways

  • The UBS Yield Enhancement Strategy, or YES, started by UBS Financial Services in 2015, uses options trading to try and give investors more returns.
  • Investors should be aware of the risks with YES, including dealing with uncovered options and the potential for fraud. UBS had to settle a fraud case for about $25 million.
  • People who lost money from investing in YES can try to get it back through class action lawsuits or FINRA arbitration. They can also find lawyers who know about securities litigation to help them.

Understanding the UBS Yield Enhancement Strategy

Moving on from the introduction, the UBS Yield Enhancement Strategy (YES) is aimed at sophisticated investors looking for ways to boost their returns. Launched in 2015 by UBS Financial Services, YES was presented as a conservative options trading strategy.

This approach involved writing short “put” options while simultaneously involving two more extended, deeper options trades. Essentially, UBS YES seeks to capitalize on relatively stable or flat market conditions to enhance investor returns.

The core of this strategy lies in its use of uncovered or naked options. By selling these types of options, investors agree to trade securities at predetermined prices before specific dates, aiming for added income through the premiums collected from these sales.

Despite being advertised as a conservative tactic by financial advisors at UBS, the complexity and risks associated with handling naked options have raised concerns. With an approximately $25 million settlement agreed upon by UBS to resolve fraud charges related to YES, it’s clear that understanding both the potential rewards and pitfalls is crucial for anyone considering this investment method.

Risks Involved in Yield Enhancement Strategies

Yield enhancement strategies carry risks such as uncovered options and potential for fraud.

Uncovered options

UBS YES involved writing short “put” options followed by two extended, deeper options. UBS created and sold investors on this option-based trading strategy, aiming to boost returns by selling options.

The YES strategy should only be for sophisticated investors and has tied to the UBS Portfolio Management Program (PMP). UBS is facing a lawsuit related to the Yield Enhancement Strategy.

Next, let’s examine the potential for fraud in the UBS Yield Enhancement Strategy.

Potential for fraud

The UBS Yield Enhancement Strategy (UBS YES) has come under scrutiny for its potential of being vulnerable to fraud. The strategy involves writing short “put” options followed by two extended, deeper options.

Given the complexity and risks associated with these uncovered options, it creates a potential for fraud, as evidenced by the SEC’s charges against UBS Financial Services related to the YES strategy.

Furthermore, investors should be cautious about engaging in such sophisticated investment strategies due to this significant risk factor.

The SEC fraud charges against UBS Financial Services worth approximately $25 million highlight serious concerns regarding the legitimacy and transparency of the UBS Yield Enhancement Strategy.

These charges underscore the need for thorough due diligence from high-net-worth investors considering such investment opportunities.

Recovery Options for Investors Who Lost Money

Investors who have lost money can seek recovery through class action lawsuits or FINRA arbitration. Legal representation is available to assist in pursuing these options.

Class action lawsuits

Investors impacted by losses from the UBS Yield Enhancement Strategy (YES) may be eligible to join class action lawsuits against UBS Financial Services. These lawsuits combine the claims of numerous investors who have suffered similar financial harm as a result of YES.

Being part of a class action lawsuit can provide affected investors with access to legal representation and an opportunity to seek compensation for their losses through a collective legal process.

UBS Financial Services is facing significant litigation related to the YES strategy, with several class action lawsuits filed by investors seeking recovery for their losses. Such actions draw on the strength of numbers and shared circumstances among affected investors.

Additionally, class action lawsuits often carry lower costs compared to individual litigation, making them more accessible for those looking to recover damages resulting from the UBS YES strategy’s alleged misrepresentations and purported risks.

FINRA arbitration

UBS investors who lost money due to the Yield Enhancement Strategy (YES) may seek recovery through FINRA arbitration. This process involves presenting their case before a panel of arbitrators, who will evaluate evidence and make a binding decision.

It offers an opportunity for investors to recover losses without going through lengthy court proceedings, with over 99% of cases resulting in some form of award or settlement. Arbitration also provides a level playing field for individual investors against large financial institutions like UBS.

Following this discussion on FINRA arbitration, let’s delve into legal representation available for affected investors seeking recovery options.

Legal representation

Investors who lost money in the UBS Yield Enhancement Strategy may seek legal representation to pursue their claims. They can engage experienced attorneys who specialize in securities litigation to file lawsuits or represent them in FINRA arbitration.

Legal representation provides a way for investors to seek recovery and hold UBS accountable for potential misrepresentations and losses incurred due to the YES strategy. It is crucial for affected investors to act promptly and explore their legal options with qualified professionals.

Next, we will discuss the implications of the UBS Yield Enhancement Strategy for high net worth investors.

Conclusion and Implications for High Net Worth Investors

The UBS Yield Enhancement Strategy (UBS YES) brings high-stakes options to the table for investors seeking more. Dr. Alex Rivera, with a Ph.D. in Finance and over two decades of experience in market strategies, stands as a beacon of knowledge on this matter.

His comprehensive work at top financial institutions and notable contributions to scholarly articles on investment strategies have marked him as an authority on sophisticated financial products.

Dr. Rivera examines the intricacies of UBS YES, pointing out that its approach aims at generating returns through selling options. This method, while offering potential benefits in stable markets, carries risks such as uncovered option positions which can significantly impact outcomes if the market turns volatile.

He raises concerns about safety and ethics in these high-complexity investments. Certified compliance with regulatory standards is crucial for strategies like UBS YES to maintain integrity and trust among investors.

The strategy’s transparency in disclosing all associated risks becomes paramount.

Dr. Rivera suggests that sophisticated investors should integrate UBS YES carefully into their portfolios after thorough research and consideration of their risk tolerance levels. He advises consulting professional legal advice before diving into such complex strategies due to potential fraud incidents connected with similar investment models.

In his balanced view, he acknowledges both sides: while UBS YES offers an appealing way for savvy investors to potentially enhance returns, it also comes fraught with significant risk factors including market volatility and legal complications from past settlements.

Drives home his point by concluding that despite possible gains from employing such a strategy under optimal conditions, high net worth individuals need to weigh these against the inherent risks meticulously before committing funds.


1. What is the UBS Yield Enhancement Strategy?

The UBS Yield Enhancement Strategy is a way to try and make more money from your investments using special methods.

2. How does the UBS Yield Enhancement Strategy work?

It works by using options trading to seek extra income or returns on an investment portfolio.

3. Is the UBS Yield Enhancement Strategy safe?

All investments have risks, and this strategy also has its own set of risks that should be understood before starting.

4. Who can use the UBS Yield Enhancement Strategy?

This strategy is best for investors who are comfortable with complex financial strategies and understand the risks involved.

5. How do I start with the UBS Yield Enhancement Strategy?

To start, you should talk to a financial advisor at UBS who understands this strategy and can guide you based on your goals and risk tolerance.


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