Tr?id=566623520170033&ev=PageView&noscript=1

UBS Faces Class Action Lawsuit Over Cash Sweep Programs

Posted on September 27th, 2024 at 11:52 AM
UBS Faces Class Action Lawsuit Over Cash Sweep Programs

From the desk of Jim Eccleston at Eccleston Law

UBS has been hit with a class action lawsuit over its cash sweep programs, joining other major firms like LPL, Wells Fargo, and Ameriprise, which have faced similar litigation. FinancialPlanning reports that the suit claims UBS mishandled client funds in retail brokerage accounts managed on an advisory basis between 2013 and 2023.

Cash sweep programs, a common feature at many financial firms, involve transferring excess cash from clients’ accounts into interest-bearing accounts at various banks. The lawsuit alleges that UBS prioritized its financial gain by steering client funds into its cash sweep programs, where interest rates were neither competitive nor in compliance with the firm’s legal duties.

The complaint highlights that UBS offered several cash sweep options tailored to different types of accounts, such as trusts, retirement advisory accounts, and non-retirement retail accounts. However, those options provided annual percentage yields significantly lower than those offered by competitors like Vanguard and Fidelity. Unlike some firms that automatically sweep uninvested cash into high-yield money market funds, UBS allegedly limited these options for retail clients.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

1787679428 Law
August 25, 2026
Ameriprise Broker Sues LPL-Affiliated Practice Over Use of "Kindred" Name

AdvisorHub reports that an Ameriprise Financial broker in Oklahoma has filed a trademark infringement lawsuit against an LPL Financial-affiliated practice over its use of the word "kindred" in its name.

1787592120 Law
August 24, 2026
Sophisticated Voice Phishing Attacks Target Major Wall Street Firms

According to ThinkAdvisor, hackers recently launched a series of sophisticated cyberattacks against major Wall Street firms, including prominent hedge funds and private equity companies.

1787342003 Law
August 21, 2026
Rising Market Leverage Raises Concerns About Financial Stability Despite Low Volatility

The leverage that has helped drive the U.S.