Articles Tagged with UBS YES

Broker-Dealer Losses Yet Another Investor Claim Involving Its Yield Enhancement Strategy 

A Financial Industry Regulatory Authority arbitration panel has awarded investors $1.34M, including punitive damages,  for losses sustained in the UBS Yield Enhancement Strategy. This is the latest award related to UBS Financial’s complex options trading strategy that has cost investors over $1B.

In June 2022, UBS agreed to pay $25M to settle Securities and Exchange Commission (SEC) fraud charges accusing the firm with failure to provide its brokers with proper training and oversight in the YES program even as they sold this strategy to hundreds of investors. This purportedly caused many of the firm’s financial advisors to not fully comprehend the risks involved and affected their ability to determine whether the Yield Enhancement Strategy was, in fact, in the best interests of these customers.  

Firm Accused of Inadequate Training And Poor Supervision of Brokers That Sold YES   

UBS Financial Services has consented to pay about $25M to settle US Securities and Exchange Commission (SEC) charges related to the firm’s Yield Enhancement Strategy (YES). The regulator contends that the broker-dealer, which marketed and sold $2B of UBS YES to about 600 high-net-worth individual investors between February 2016 and February 2017, allegedly failed to adequately train its financial advisors in and supervise this complex iron condor strategy. 

This purportedly included the firm knowing about— documenting—the “possibility of significant risk” but not notifying many of its brokers and clients about this. 

Francis Amsler and Marc Lobarde Were the UBS Financial Brokers of Record

A Financial Industry Regulatory Authority (FINRA) arbitration panel has awarded a Houston, Texas, couple $3.9 million in their claim against UBS Financial Services (UBS). The couple alleged losses from the firm’s Yield Enhancement Strategy (YES). 

Now, UBS must pay these former YES investors almost $4 million to compensate the investors for their losses. This includes $2.9 million in compensatory damages and approximately $1 million in legal fees and other costs.

YES Claimants’ FINRA Arbitration Case Alleged Misrepresentations and Negligence

A Financial Industry Regulatory Authority (FINRA) arbitration panel has awarded two investors $1.2M (plus 6% interest from June 28, 2019, through March 7, 2022) over losses they sustained in the UBS Yield Enhancement Strategy (UBS YES). This options overlay strategy, also known as the iron condor strategy, is exclusive to UBS. 

The claimants contend that UBS YES was misrepresented and not in line with their investment goals and risk tolerance level. They accused the broker-dealer of fraud, negligence, breach of fiduciary duty, unsuitability, and other violations. 

FINRA Arbitration Ruling Grants Largest UBS YES Award to Date  

A Financial Industry Regulatory Authority (FINRA) arbitration panel has awarded a deceased investor’s family trusts $1.857M in their securities case against UBS Financial. The broker-dealer had involved the late Irving Siegel’s QTIP Trust and generation-skipping transfer trust in its UBS Yield Enhancement Strategy. This is the largest award to claimants over UBS YES losses to date. 

Siegel passed away in 2013. He left the trusts for his family. The trusts accused the broker-dealer of misrepresentation, negligence, and fraud in their investor claim. A FINRA arbitration panel in Boca Raton, Florida, awarded Siegel’s QTIP trust $1.171M and his generation-skipping trust $517K. The rest of the award was for prejudgment interest and other fees. 

UBS Financial Services is Also a Defendant in New Class Action Lawsuit

If you are a UBS Financial Services customer who invested in the firm’s Yield Enhancement Strategy (UBS YES) at the recommendation of New York financial advisor, William Montgomery Cerf, you are not alone.

According to BrokerCheck, William Cerf is named in six pending customer disputes. The claimants are collectively requesting $16.5M in damages. He is also one among many UBS brokers who marketed and sold UBS YES as a low-risk way to generate modest income. This options overlay strategy has ended up costing wealthy investors millions of dollars.

Contact Information