Investigating UBS Financial Services

When investing for your future, you want to do it on your own terms and know the risks and benefits of financial choices. But what if the investment firm you were working with recommended certain investments without telling you of the risks they posed? UBS Financial Services has come under fire from the Securities and Exchange Commission for selling Reverse Convertible Notes (RCN) without adequately training and educating the sales force or customers about the risks of this complex financial product.

As a result, UBS brokers may have recommended unsuitable investment products, putting its investor clients at a risk. We are investigating these claims and working with investors. If a UBS representative sold you a Reverse Convertible Note, we want to hear from you. Contact us to learn how we can help.

Reverse Convertible Note (RCN)

RCNs are complicated security structures. The SEC charged UBS with supervisory failures in the sale of these complex products and found that UBS failed to adequately educate and train their registered representatives who sold the products. As a result, according to the SEC, “certain registered representatives made unsuitable recommendations in the sale of RCNs to certain retail customers.” The SEC also reported that UBS sold approximately $548 million in RCNs to more than 8,700 inexperienced retail customers.

Security and Exchange Commission (SEC)

The SEC is tasked with protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation. In a recent press release, the SEC reported that UBS had agreed to pay more than $15 million to settle charges for not having a management system in place for the recommendation of RCNs. According to Michael Osnato, chief of the SEC Enforcement Division’s Complex Financial Instruments Unit, “When it comes to complex financial products, investors are especially dependent upon firms making sure their financial advisors comprehend the potential risks and rewards of the investments they are recommending.”

If a UBS representative sold you a Reverse Convertible Note, you may have a claim and we can help you understand your legal options. Call us at 1.800.887.8029 or fill out our free case evaluation. Zimmerman Reed is experienced in handling investor claims and we welcome your questions.