FINRA Arbitration Could Help You Recover UBS YES Losses

October 7, 2019 |

FINRA arbitration claims could help UBS clients recover losses from their investment in the Yield Enhancement Strategy (YES). Multiple arbitration claims have already been filed by customers who lost considerable money in YES, alleging that UBS did not accurately represent the risks of the program.FINRA arbitration claims could help UBS clients recover losses from their investment in the Yield Enhancement Strategy (YES). Multiple arbitration claims have already been filed by customers who lost considerable money in YES, alleging that UBS did not accurately represent the risks of the program.

About FINRA Arbitration

FINRA, the Financial Industry Regulatory Authority, is a Congressionally-authorized not-for-profit organization that provides protection for investors by regulating the securities industry. It does this by enforcing rules governing brokers and brokerage firms.

FINRA operates a dispute resolution forum where non-judicial arbitration and mediation proceedings can resolve securities disputes between investors and brokerage firms and brokers using an independent third party.

The benefit of filing an arbitration or mediation claim with FINRA is that you can recover damages, usually faster and with lower costs than going through the court system. By using arbitration, the parties forgo the right to bring the case in court. Awards for damages are legally binding and the ability to appeal an arbitration decision is limited to a small number of issues.

Parties may have an attorney with them during the arbitration process to provide legal guidance.

Initiating FINRA Arbitration

The process begins when a claimant, like an investor, files a Statement of Claim with FINRA. The Statement of Claim contains the following information:

  1. A description of the dispute
  2. The parties involved
  3. The amount of money sought.

Documents that support the claim are also provided when the claim is filed. The claimant must submit a Submission Agreement that lists the parties in the case, in addition to confirming that FINRA will be the administrator, that the case will end with a hearing, and that the parties agree to abide by the decision of the arbitrator. The claimant must pay appropriate fees to initiate the process.

After the required documents are filed by the claimant, FINRA serves the Statement of Claim on the other parties involved in the dispute, known as the respondents. FINRA examines the size of the claim to determine the number of arbitrators that will be needed, as well as the nature of the dispute and the types of securities involved.

A claim is not eligible for FINRA arbitration if six years have passed since the occurrence or event that gave rise to the claim. During the arbitration process, no party may bring a suit, legal action, or proceeding against any other party that concerns or that would resolve any matters raised in the arbitration. Class action disputes are not eligible for FINRA arbitration.

UBS Yield Enhancement Strategy (YES)

The UBS Yield Enhancement Strategy (YES) involved trading options with a complex series of put and call spreads with the same expiration date and different strike prices with a strategy called an “iron condor”.

UBS allegedly marketed YES as a conservative method for investors to increase return on their money with little risk. However, options trading is risky, involves speculation, and is only suitable for investors seeking such risks. The program caused significant losses for some investors.

Investors have alleged UBS did not adequately disclose the risks involved in their strategy and/or they may not have considered the investor’s investment objectives when pushing this strategy. For those reasons, it may be possible to recover losses from this program through FINRA arbitration.

Get Help With UBS YES FINRA Claim

While the arbitration process can be less complicated than using the traditional court system, it is still advisable to speak with an experienced attorney about a securities claim.

Our team of attorneys have been working together on cases for many years. Our leading attorneys have extensive experience prosecuting investment fraud disputes. Our background and experience includes working at the Securities and Exchange Commission (SEC), in house counsel for a brokerage firm, and on Wall Street as a defense attorney. Our past experience gives us the knowledge and resources necessary to help you maximize your recovery.

Contact our UBS YES attorneys today at 800-975-4375.