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description UBS Yield Enhancement Strategies Investor Alert: Securities Lawyers Investigating UBS YES Trading Program in the Wake of Investor Losses

UBS Yield Enhancement Strategy Trading Program (“UBS YES”) Investigation Focused on Adequacy of Risk Disclosures, Suitability of Investment Recommendations, Over-Concentration Concerns, and Whether Trading Was Consistent with Disclosed Strategy

Have you suffered losses investing in UBS’s Yield Enhancement Strategy trading program (“UBS YES”)?

The investor rights lawyers at Goldman Scarlato & Penny are working with numerous UBS YES investors who believe they lost substantial amounts of money invested in the Yield Enhancement program.  They have been investigating this matter since early 2019, have filed several cases on investors’ behalf, and are preparing additional cases to seek compensation for any losses the investors suffered. 

The investigation focuses on a number of important issues, including (1) whether the UBS Yield Enhancement Strategy fully and adequately disclosed to investors important and major risks associated with the YES program; (2) whether UBS investors were improperly invested in the YES program, which may have been unsuitable to their investment profile; (3) whether some investors’ portfolios may have been overly-concentrated in the YES program; and (4) whether the actual trading strategy was consistent with the advertised strategy in the YES presentations and brochures.

Invested in UBS’ Yield Enhancement Strategy trading program (UBS YES)?  

UBS is a multinational financial services firm that provides brokerage services and investment advice to investors across the country. In recent years UBS and several other broker-dealer firms such as Credit Suisse, Merrill Lynch, and Morgan Stanley began offering option-based trading strategies to some of their customers with large portfolios, ostensibly designed to increase the yield in those investors’ portfolios.

UBS launched the Yield Enhancement Strategy, a trading program advertised as an option-based trading strategy that sought to increase returns for investors who committed a certain minimum amount of their portfolio (called a “Mandate”) to this strategy. UBS brokers advertised the Yield Enhancement Strategy as an investment or trading program that involved trading call or put options to try and accomplish increased returns in their customers’ portfolios. Stock options give investors and traders the right to buy or sell a given financial product at a predetermined price within a fixed period based on the price of the financial product at the expiration of the product.

UBS offered the Yield Enhancement Strategy typically to high net worth investors, who had to agree to allocate a minimum Mandate, typically an amount of money in excess of a million dollars, to the YES program.  The investors were often presented with a presentation, or “slide deck,” which purported to describe the Yield Enhancement program. Securities attorney Alan Rosca believes the YES presentation may have omitted material risk disclosures, as more fully detailed below.

The UBS YES program included trading strategies such as the Iron Condor, so named after the colorful appearance on a graph, and the open wings of the condor lie in the red, where funds are lost, while the body of the strategy lies in the green, where investors are expected to profit.

The iron condor is an options strategy structure which entails writing two near money options that are short, in addition to purchasing two deeper out-of-the money options that are long. The first component of an iron condor involves selling an out-of-the money put (short put), while simultaneously selling an out-of-the money call (short call). The colorful strategy was marketed as a way to seek additional returns for investors, however, many investors have indicated they suffered unexpected investment losses instead. Investors who have contacted securities lawyer Alan Rosca have expressed concern regarding ongoing or increasing losses in their portfolios.

Securities attorney Alan Rosca, of the Goldman Scarlato & Penny PC law firm, is investigating the UBS Yield Enhancement Strategy on behalf of investors. Investors who believe they lost money investing in UBS’ Yield Enhancement Strategy are encouraged to contact attorney Alan Rosca with any useful information or for a free, no-obligation discussion about their loss recovery options.

UBS YES Investors See Substantial Losses in their UBS YES Portfolio, Some Are Unable to Promptly Withdraw Their Money from the Yield Enhancement Programs to Avoid the Risk of Additional Losses

Starting in late 2018 and continuing through the first part of 2019, UBS investors whose portfolios were invested in the Yield Enhancement Strategy trading program have started seeing substantial losses in their portfolios.  Those losses have continued to increase even as investors started expressing serious concerns about the direction of their portfolios.

Some UBS Yield Enhancement investors who saw losses in their YES portfolio were reportedly asked to put up additional collateral or are facing margin deficits.

What’s worse, it appears that at least some of the UBS YES investors were not able to quickly extricate their savings from the Yield Enhancement programs, and are facing the risk of additional losses, on top of the substantial losses they already incurred.

Securities lawyers Alan Rosca and Paul Scarlato expressed concerns that the YES trading program may be unsuitable for some of the investors to whom it was offered, and some investors’ portfolios may have been overly-concentrated in this option-based trading strategy, in violation of the securities rules and regulations.

Securities Lawyers Investigating Serious Concerns Regarding the UBS Yield Enhancement Program

Securities attorney Alan Rosca and his colleagues are working with investors who believe they have been victimized by the Yield Enhancement program, and have suffered substantial losses.  They are preparing to take action to seek compensation for the investors’ losses. Attorney Rosca and his colleagues have been conducting extensive research regarding UBS Yield Enhancement program and similar trading programs launched by other brokerage firms. Those programs target high-net worth investors who must agree to allocate significant portions of their portfolios to this risky strategy.

Attorneys Rosca, Goldman and Scarlato are working with numerous UBS investors who believe they suffered substantial losses in the Yield Enhancement program. They have filed several cases on investors’ behalf and are preparing additional legal proceedings to seek compensation for investor losses. He and his colleagues are continuing to investigate the Yield Enhancement trading strategy in view of certain serious concerns.

“ Judging by results in late 2018 and early 2019 in UBS investors’ portfolios, this trading program might have well been called the ‘Yield Destruction Strategy,’” said attorney Rosca. “We are in touch with UBS investors who suffered substantial losses. We are preparing to seek compensation on their behalf. Our investigation so far suggests that important risks surrounding YES may have not been properly – if at all – disclosed to investors. We also have concerns regarding the suitability of the YES program for some of the investors to whom it was recommended. Investors who saw grievous losses in their portfolios are wondering if the program was misrepresented to them or if the actual transactions were consistent with the trading strategy advertised to investors. We are continuing to investigate and will find out in due time,” said attorney Rosca.

What Should UBS YES Investors Do

UBS Yield Enhancement Strategy investors who believe they suffered losses in their portfolios are encouraged to contact the Goldman Scarlato & Penny securities lawyers for a free, no-obligation evaluation of their recovery options, or to provide useful information and assist the attorneys’ investigation.

Financial industry rules and regulations require that financial institutions adequately inform investors, in advance, about the risks involved in investment programs.  Additionally, investors must only be offered investment products and strategies that are suitable to their investment profile and risk tolerance. Lastly, investors’ portfolios may not be overly-concentrated, and must be adequately diversified. When brokerage firms violate these rules and cause their customers to suffer losses, investors may be able to seek recovery of such losses through FINRA arbitration.

The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related misconduct and is currently working with investors in UBS’s Yield Enhancement Strategy program and preparing to take action. The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for the lawyers’ fees and costs out of money recovered for clients. There is no upfront fee or downpayment.  No fees or costs are charged if there is no recovery.  Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.

Investors who believe they lost money invested in UBS’ Yield Enhancement Strategy may contact attorney Alan Rosca or his colleagues, Paul Scarlato or Mark Goldman, for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at, or through the contact form on this webpage.

As of the date of this article there has not been a finding of liability as to the matters mentioned in this article, unless otherwise indicated.

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