Erez Law is currently investigating brokers across the United States who recommended their clients invest in JPMorgan Chase Auto Callable Contingent Interest Notes Linked to the S&P GSCI® Crude Oil Index Excess Return. It is alleged that brokers unsuitably recommended these complex structured notes to their clients.
What is JPMorgan Chase Auto Callable Contingent Interest Notes Linked to the S&P GSCI® Crude Oil Index Excess Return?
The JPMorgan Chase Auto Callable Contingent Interest Notes Linked to the S&P GSCI® Crude Oil Index Excess Return is a complex, illiquid structured product that is typically too risky for the average retail investor. It is alleged that brokers across the country unsuitably recommended their clients invest in this illiquid investment, many of whom were conservative investors, inexperienced investors, and retirees.
The structured note offers a benchmark for crude oil’s investment performance and it offers investors the possibility of earning interest payments that are above the market rate depending on how the underlying asset closes on an observation date. However, they also pose a great deal of risk for investors who have the potential to receive no payments or lose some or all of their principal invested.
What are Structured Notes?
Structured products are complex securities derived from or based on a single security or index, basket of securities or indices, a debt issuance, a commodity and/or a foreign currency. Most structured products pay an interest or coupon rate based on certain defined parameters. structured products typically consist of a note and a derivative, most often an option. While the note pays interest, the derivative defines the payment at maturity.
Created by investment banks, structured notes are packaged debt with at least one derivative and one traditional investment, such as commodities, currencies, a basket of securities, or a stock. Structured notes typically pay high fees to investment brokers or financial advisors who recommend them, and they expose the investor to high risks to meet the financial obligations, including total loss of their investment. Performance of at least once of the underlying assets can result in payoff.
JPMorgan Chase Auto Callable Contingent Interest Notes Linked to the S&P GSCI® Crude Oil Index Excess Return Investment Loss Options
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, brokerage firms across the country may be liable for investment or other losses suffered by its customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.