Dimond Kaplan & Rothstein, P.A. Files FINRA Arbitration Claim Against UBS to Recover Yield Enhancement Strategy Options Losses
MIAMI, March 25, 2019 (GLOBE NEWSWIRE) -- Nationally recognized securities law firm Dimond Kaplan & Rothstein, P.A. ( http://www.dkrpa.com ) has filed a FINRA arbitration claim against UBS Financial Services, Inc. on behalf of investors who lost money in UBS’s so-called “Yield Enhancement Strategy” or the “YES” program. UBS recommended its YES program to DKR’s retired, low-risk clients who were looking for conservative income. Specifically, UBS represented the YES program as an options strategy that would safely generate incremental income to supplement the investors’ retirement income. But the strategy actually was risky and complex and subjected the investors to significant risk of loss. UBS Yield Enhancement Strategy Exposed Investors to Great Risk
Options are generally considered to be risky securities, but some brokerage firms claim that they can devise a low-risk strategy using combinations of options. Here, UBS represented to investors that its Yield Enhancement Strategy involved buying and selling puts and calls on the S&P 500 Index to safely generate income for YES investors. UBS also represented that the neutral combination of options would provide investors with downside protection. But the YES program was fraught with risk as a result of a lack of the promised downside protection. In short, YES investors did not get the safe, income strategy that they were told they were getting.
When the securities markets experienced significant volatility in December 2018, YES investors experienced significant and unexpected losses.
Investors May Have a Claim for UBS Yield Enhancement Strategy Loss
We believe that UBS YES investors have valid claims to recover their YES losses through a FINRA arbitration claim. If you lost money in the Yield Enhancement Strategy you should contact a lawyer who has experience representing investors in investment fraud and broker negligence cases.
From its offices in Miami, Los Angeles, West Palm Beach, New York, Los Angeles, and Naples Dimond Kaplan & Rothstein, P.A. represents investors throughout the United States, Mexico, and throughout Latin America in stockbroker misconduct and investment fraud cases.