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

TESTIMONIALS

Previous
Next

Thank you for your professional assistance with this matter. You are very good at what you do.

John T.

LATEST NEWS AND ARTICLES

June 14, 2024
Wells Fargo Fires Employees for Faking Work

Wells Fargo & Co. recently terminated over a dozen employees following an investigation into allegations of fake work activities.

June 13, 2024
FINRA Struggles to Revise Outside Business Rules

The Financial Industry Regulatory Authority’s (FINRA) attempt to update its rules on advisors’ outside business activities has stalled, according to Robert Colby, FINRA's chief legal officer.

June 12, 2024
Tax Court Denies Madoff Victims $8.2 Million Deduction

Victims of Bernie Madoff's Ponzi scheme, Christopher and Silvana Pascucci, cannot claim an $8.2 million tax deduction for their investment in life insurance premiums.