Have you suffered losses investing in structured notes created by UBS? If so, the securities attorneys of The White Law Group may be able to help you recover those losses through a FINRA arbitration claim against the brokerage firm that recommended the investment.
Structured notes are complex derivative products created by investment banks. Banks create structured notes by packaging debt with derivatives to offer customized bets to retail investors while earning fees and raising money. These products typically pay a high fee to the financial advisors that sell them. They are also extremely complex and difficult for investors (and sometimes even the financial advisors) to understand.
In or about August, 2015, the Securities and Exchange Commission issues a risk alert which discussed structured products. The SEC’s alert stated that it had analyzed 26,600 structured product transactions totaling $1.25 billion, and found a significant number of instances in which the investments were unsuitable for the purchasers’ investment objectives and needs.. The SEC also found that brokerage firms’ supervision of sales of structured products and their supervisory procedures were weak and insufficient.
Investment banks that create these products often tout the benefits, including stating that structured notes offer potentially higher returns, element of capital protection, exposure to assets that may otherwise be difficult to access, and defined potential return.
What banks often gloss over though are the enormous costs and fees that the banks make for creating and selling these products. These costs and fees can often times negate any of the benefits. Also often glossed over are the enormous risks associated with these investments, including exposure to the risk that the issuer is unable to meet financial obligations (a la Lehman Brothers’ inability to pay on its principal protected notes when the firm declared bankruptcy), total loss if the underlying asset crosses a defined threshold, and limited upside.
The White Law Group continues to investigate the liability that brokerage firms may have for improperly selling UBS structured notes.
Brokerage firms are required to perform adequate due diligence on any product they recommend and to ensure that all recommendations are suitable for their client in light of the client’s age, investment experience, net worth, income, and investment objectives.
Firms that fail to perform adequate due diligence or make unsuitable recommendations can be held liable for any resulting losses.
The White Law Group is specifically looking at the following UBS structured notes:
UBS Structured Notes tied to Crude Oil
UBS Structured Notes tied to Steel
UBS Structured Notes tied to Copper
UBS Structured Notes tied to Nickel
UBS Structured Notes tied to Natural Gas
UBS Structured Notes tied to Coal
UBS Structured Notes tied to Wheat
UBS Structured Notes tied to Coffee
UBS Structured Notes tied to Palladium
If you invested in one of these UBS structured notes and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.