UBS Prevails in One “YES” Case, But Loses Another

Posted on October 6th, 2021 at 12:44 PM
UBS Prevails in One “YES” Case, But Loses Another

From the Desk of Jim Eccleston at Eccleston Law:

UBS Wealth Management has been involved in several arbitration proceedings over its proprietary options-spread strategy, YES (Yield Enhancement Strategy), which prompted numerous client complaints after a period of market volatility. According to a UBS marketing brochure, the YES strategy was created as a market-neutral strategy to produce additional cash flow through the sale and purchase of S&P index option spreads. The YES strategy featured a “defined maximum loss”, which was limited to premiums paid as well as collecting premiums for writing options.

The results of the arbitration hearings have been mixed. For example, in one of the arbitration hearings, a Financial Industry Regulatory Authority (FINRA) panel ordered UBS to pay at least $800,000 to two couples who were harmed by the strategy. Likewise, another FINRA arbitration panel denied UBS’ request to expunge the claim from the records of two of its financial advisors, implicitly finding that the YES claims against them were not false.

Overall, however, UBS has prevailed in nine of 15 YES-related arbitration decisions. More claims – and results -- are certain to follow. 

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

Tags: eccleston law, ubs, finra

Return to Archive



I am so glad I found you! Wow! I appreciate your help, concern and guidance.



February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.

February 20, 2024
Challenges Persist: Firms Struggle to Comply with Regulation Best Interest

FINRA's annual report for 2024 reveals a concerning trend among broker-dealers, with numerous instances of violations of Regulation Best Interest (Reg BI).

February 19, 2024
FINRA Flags Violations in 70% of Broker-Dealers' Crypto Communications

During a two-year-old targeted examination, the Financial Industry Regulatory Authority (FINRA) has identified potential violations in 70 percent of broker-dealers' communications about cryptocurrencies.