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

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

1785531573 Law
July 31, 2026
Former Alabama Financial Advisor Barred After Selling His Practice

The U.S.

1785428190 Law
July 30, 2026
CFP Board Proposes New Rules for Handling Expunged Criminal Records

The CFP Board has announced that it is considering a proposal to change how it treats applicants with expunged criminal convictions, according to Wealth Management.

1785344491 Law
July 29, 2026
Edward Jones Invests in Fintech Firm Focused on Preventing Elder Financial Fraud

Edward D.