Concerned about investment losses in Barclays Bank PLC Trigger Phoenix Autocallable Optimization Securities (PAOS) offered by UBS?
Have you suffered losses investing in Barclays Bank PLC Trigger Phoenix Autocallable Optimization Securities? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
According to the prospectus, Barclays Bank PLC Trigger Phoenix Autocallable Optimization Securities are unconditional, unsecured and unsubordinated debt securities issued by Barclays Bank PLC linked to the performance of the shares of the SPDR® S&P® Metals & Mining ETF .
The White Law Group is investigating brokerage firms who may be unsuitably recommending Barclays Bank PLC Trigger Phoenix Autocallable Optimization Securities to their clients.
The prospectus states:
Investing in the Securities involves significant risks. You may lose some or all of your principal amount. The contingent repayment of principal only applies if you hold the Securities to maturity. Any payment on the Securities, including any repayment of principal, is subject to the creditworthiness of the Issuer. If Barclays Bank PLC were to default on its payment obligations you may not receive any amounts owed to you under the Securities and you could lose your entire investment.
Structured notes are complex.
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 total loss if the underlying asset crosses a defined threshold, and limited upside.
Brokerage firms are required to perform due diligence.
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.
If you invested in one of these Barclays 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.