Erez Law is currently investigating UBS Financial Services financial advisors across the country who recommended investments in UBS Reverse Convertible Notes linked to the volatile energy sector.
UBS recently settled a claim with the Securities and Exchange Commission (SEC) related to its sale of structured notes such as UBS Trigger Yield Optimization Notes. In the settlement with the SEC, “UBS has agreed to pay more than $15 million to settle charges that it failed to adequately educate and train its sales force about critical aspects of certain complex financial products it sold to retail investors,” according to the SEC. “The SEC’s order finds that UBS failed to develop and implement policies and procedures reasonably designed to educate and train UBS registered representatives in connection with the sale of reverse convertible notes (RCNs) so that they could form a reasonable basis to make suitable recommendations.” The report explained that without adequate training, registered representatives made unsuitable recommendations in the sale of RCNs to retail customers despite their investment profiles or goals. In fact, UBS sold approximately $548 million in RCNs to more than 8,700 relatively inexperienced retail customers.
Structured products, such as the UBS Yield Optimization Notes investments, are often speculative and unsuitable for many types of investors, especially elderly customers who are looking to preserve their principal and live off of interest made on those investments.
Many UBS customers lost money with structured notes, including:
- UBS Trigger PAOS Cree
- USB Trigger PAOS US Steel
- UBS PAOS Trigger Peabody Energy
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, UBS may be liable for investment or other losses suffered by its customers.
Erez Law represents investors for claims against brokerage firms across the United States for claims against UBS Financial Services for losses due to investments in structured products and private placements tied to the energy sector. 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.
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