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UBS Yield Enhancement Strategy (YES) Investigation — Undisclosed Risks, Unsuitability, Overconcentration Concerns

UBS YES Investors Have Reported Substantial Losses; Securities Lawyers Preparing to Seek Compensation for Investor Losses

UBS Financial Services, a multinational financial services firm, sold the Yield Enhancement program to investors as a way to seek relatively safe increased returns in their portfolios. Investors are now seeing substantial losses in their YES portfolios and are reaching out to the Goldman Scarlato & Penny securities lawyers.

Investor rights lawyer Alan Rosca is working with UBS customers and preparing to take action and seek compensation for their Yield Enhancement portfolio losses. He and his colleagues have been investigating the YES program with a focus on a number of important concerns including:

  • –        Whether important risks were appropriately – if at all – disclosed to Yield Enhancement investors;
  • –        Whether some of the investors were put into this investment program despite the fact that it was unsuitable to them, in view of their background and risk expectations;
  • –        Whether investors’ portfolios were overly-concentrated in the Yield Enhancement program; and
  • –        Whether the actual trading was consistent with the strategy advertised to investors.

UBS allegedly marketed YES as a neutral or low risk strategy that required customers to allow a mandate to be put against the customer’s portfolio which would be used to power returns through option trading strategies including the so-called iron condor.

The iron condor strategy is so 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. 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, 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).

Stock options give investors and traders the right to buy or sell a given financial product at a predetermined price within a fixed period, and the price of the financial product at the expiration of the product lead to either buying, selling, or no other action.

In recent weeks, when UBS YES investors reported substantial losses in their portfolios. Making things worse, the losses have been accumulating. Unfortunately, the only advice they have been getting is to ride the waves or to stay the course.

What Should UBS YES Investors Do

Investors who believe they have lost money in their UBS Yield Enhancement portfolios are encouraged to contact attorney Alan Rosca or his colleagues at Goldman Scarlato & Penny with any useful information or for a free, no obligation discussion about their loss recovery options.

Attorney Rosca and his colleagues are working with other UBS Yield Enhancement investors and are preparing to take action on their behalf and seek compensation for their losses. They have conducted extensive research as to the Yield Enhancement strategy, with a focus on the appropriateness of the risk disclosures and the suitability of the Yield Enhancement program to some of the investors.

Financial industry laws and regulations require that financial institutions inform investors well before making investment decisions. Investors who have allegedly suffered serious financial losses may be able to recover some of their losses through FINRA arbitration.

FINRA requires 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 and experience. Brokerage firms that fail to conduct adequate due diligence or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.

Securities Lawyer Investigating

The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related misconduct and are currently investigating UBS’s allegedly flawed and overly risky Yield Enhancement Strategy. 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.

Investors who believe they lost money as a result of UBS’s allegedly flawed and overly risky Yield Enhancement Strategy may contact attorneys Alan Rosca or Paul Scarlato 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.

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 accessing. Visitors may check the most recent version of each brokercheck report at

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