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Securities Fraud Investigation Involving UBS Structured Notes Tied To Oil

The White Law Group is investigating the liability that brokerage firms may have for recommending the UBS structured notes tied to oil. If you lost money investing in UBS structured notes tied to oil, the securities attorneys of The White Law Group may be able to help you recover your losses through a FINRA arbitration claim against the brokerage firm that recommended the investment.

According to a Bloomberg Report, the recent decline in oil prices has crushed retail structured notes meant to protect against a drop in crude. Reportedly, of the $437.1 million that have matured so far this year, 44 percent, or $194.3 million of principal, has evaporated.

Banks create structured notes, like the UBS structured notes tied to oil, by packaging debt with derivatives to offer customized bets to retail investors while earning fees and raising money. These products typically pay a high fee to the financial advisors that sell them.

In or about August, 2015, the Securities and Exchange Commission issues a risk alert which discussed structured products. The SEC's alert stated that it had analyzed 26,600 structured product transactions totaling $1.25 billion, and found a significant number of instances in which the investments were unsuitable for the purchasers' investment objectives and needs.. The SEC also found that brokerage firms' supervision of sales of structured products and their supervisory procedures were weak and insufficient.

Brokers often pitch structured products, like UBS structured notes tied to oil, as providing "downside protection" against losses to a related index while allowing modest up side gain potential. Of course, this is only true if the value of the index doesn't fall below a predetermined price. If the price falls below that point, the losses in structured notes can still be huge.

Brokerage firms have two main duties in recommending structured products like UBS structured notes tied to oil. First, brokerage firms are required to perform adequate due diligence on any product they recommend. Second, brokerage firms are required to ensure that all recommendations made are suitable for their client in light of the client's age, investment experience, net worth, income, and investment objectives.

If a brokerage firm fails to do either of these things, the firm can be held responsible in a FINRA arbitration claim.

If you suffered losses investing in UBS structured notes tied to oil and would like to discuss your litigation options, please call The White Law Group at 312/238-9650 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on the firm and its representation of investors in FINRA arbitration claims, visit www.whitesecuritieslaw.com.

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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.