UBS Yield Enhancement Strategy Investigated by Securities Lawyers; Focus on Potentially Undisclosed Risks, Unsuitability, Overconcentration, and Appropriate Execution of Advertised Strategy

UBS Yield Enhancement Strategy investors have recently seen losses in their portfolios and have reached out to the securities attorneys at the Goldman Scarlato & Penny law firm. Attorney Alan Rosca and his colleagues have been investigating and are preparing to take action and seek compensation on behalf of those investors.

UBS’ so-called Yield Enhancement Strategy or YES was pitched by some financial advisors to investors as a safe investment tool to enhance the yield in their portfolios. UBS allegedly marketed YES as a neutral or low risk strategy that required customers to allocate a minimum “Mandate” to that program – a portion of the customer’s portfolio which would be used to power returns through option-based trading strategies such as the Iron Condor trading strategy.

The Iron Condor strategy is named after the colorful appearance on a graph, with the open wings of the condor in the red, where funds are lost, while the body of the strategy lies in the green, where investors are expected to profit. It 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, and 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).

This colorful strategy, as well as other option-based strategies, were marketed as a way to supply additional income to investors, however, many investors have allegedly suffered unexpected investment losses in recent weeks.

Investor rights attorney Alan Rosca and his colleagues are investigating UBS’s Yield Enhancement Strategy program. Their investigation is focused on four concerns:

  • whether certain serious risks surrounding the strategy and its execution were properly disclosed to investors;  
  • whether the financial advisors’ UBS YES recommendations were suitable to all investors;
  • whether some of the investors’ portfolios were over-concentrated in the UBS Yield Enhancement Strategy;
  • whether the actual execution of the Yield Enhancement Strategy matched the advertised strategy to the investors.

UBS YES Investors Have Been Reporting Substantial Losses in Their Portfolios

In recent weeks UBS YES investors have been reporting substantial losses in their portfolios that are part of the Yield Enhancement program. Making things worse, investors have seen increasing losses nearly every time they checked their portfolios, and have learned that it may be exceedingly difficult to terminate their participation to the YES program. When turning to their financial advisors for advice, they have been told to ride the waves or stay the course – while they have seen losses continuing to accumulate.

What Should UBS Yield Enhancement Investors Do

Investors who believe they lost money invested in UBS’s Yield Enhancement Strategy are encouraged to contact attorney Alan Rosca with any useful information or for a free, no-obligation discussion about their options.

Financial industry rules and regulations require that financial institutions inform investors well before making investment decisions. All material risks surrounding investment products or programs should be disclosed in advance. When investors in programs whose risks have not been properly disclosed suffer financial losses, they may be able to seek compensation for such losses through FINRA arbitration.

The financial industry rules require brokerage firms to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge, experience, and risk tolerance. In addition, investors’ portfolios may not be overly-concentrated in one single product or investment program. Brokerage firms that fail to conduct adequate due diligence or make unsuitable recommendations and overconcentrate their customers’ portfolios may be held responsible for the customer’s losses.

Securities Lawyers Preparing to Take Action

The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related misconduct and are currently investigating UBS Yield Enhancement Strategy. They have been in touch with investors and are preparing to take action.

The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. 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.

UBS Yield Enhancement investors may contact attorney Alan Rosca or his colleagues 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.

filed under: Investigations

Tags: , , , ,

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent updates regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases. Also, the brokercheck report linked to some of our blogs is the up-to-date version as of the date of posting. Visitors may check the most recent version of each brokercheck report at