Erez Law has alleged in multiple FINRA arbitrations that UBS’ YES program was represented to investors as a low-risk, market-neutral strategy that allows investors to generate enhanced yield while reducing risk, all without requiring investors to deposit additional funds into their UBS account. UBS’ YES program involves using the equity in an investor’s UBS account to pursue a low-risk options strategy involving a combination of put and call options on the S&P 500 index.
Erez Law has also alleged that the YES strategy actively engaged in market timing and taking directional positions on the market and suffered significant losses as a result. In October 2018, YES lost 6.89%. In December 2018, YES lost 13.5%. In 2018, YES lost 18.65%. In 2019, YES lost 2.1%. And in 2020 through June, it lost 13.5%.
One possible and most likely explanation for UBS’ motivation for recommending the YES program is the significant fees (1.75% investment advisory fee) it generated for UBS. It is alleged that UBS breached its fiduciary duty by placing its interests before those of their customers.
Erez Law is interested in speaking with investors who may have suffered losses due to investments with former UBS brokers that sold Yield Enhancement Strategy (YES) investments to their clients. If Frederick Schultz (aka Rick Schultz), Eric Teichberg, Kennan Low, and Howard S. Rothman formerly of UBS and now with J.P. Morgan as the members of The Washingtonian Group sold you YES, Erez Law is interested in speaking with you.
Schultz was registered with UBS Financial Services Inc. in Washington, D.C. from 2011 to September 2019. Teichberg was registered with UBS Financial Services Inc. in Washington, D.C. from 2011 to September 2019. Low was registered with UBS Financial Services Inc. in Washington, D.C. from 2003 to September 2019. Rothman was registered with UBS Financial Services Inc. in Washington, D.C. from 2011 to September 2019.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and 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.