The Securities Arbitration Law Firms of Klayman & Toskes, P.A., www.nasd-law.com,
announces an investigation into UBS Financial Services, Inc. (UBS), a
wholly owned subsidiary of UBS Group A.G. (NYSE:UBS), for Financial
Industry Regulatory Authority (FINRA) sales practice violations related
to UBS
Exchange Traded Access Securities (ETRACS) whose performance is
linked to declining commodity and energy prices. UBS manages ETRACS
Exchange-Traded Notes (ETNs), commonly known as structured securities
products, to generate greater returns through the use of embedded
derivatives designed to track the performance of a volatile security,
index, commodity or currency, many times without any principal
protections.
FINRA sales practice rules require a fair and balanced representation to
investors that UBS ETRACS ETNs are more complex and risky than a simple
“interest rate” credit when based on a volatile index or commodity. UBS
underwrites, manages and markets billions of dollars in UBS ETRACS ETNs
to its customers, including the following:
-
UBS ETRACS Alerian MLP Index ETN (NYSE Arca: AMU)
-
UBS ETRACS 2X Monthly Leveraged S&P MLP Index ETN (NYSE Arca: MLPV)
-
UBS ETRACS Alerian MLP Infrastructure Index ETN (NYSE Arca: MLPI)
-
UBS ETRACS 2X Monthly Leveraged Long Alerian MLP Infrastructure Index
ETN (NYSE Arca: MLPL)
-
UBS ETRACS CMCI Energy Total Return ETN (NYSE Arca: UBN)
-
UBS ETRACS CMCI Total Return ETN (NYSE Arca: UCI)
-
UBS ETRACS Bloomberg Commodity Index Total Return (NYSE Arca: DJCI)
On August 24, 2015, the Securities Exchange Commission (SEC) issued a National
Exam Program – Risk Alert Report which reviewed sales practices
violations of major Wall Street brokerage firms related to the
supervision and sales of Structured Securities Products, similar to UBS’
proprietary ETRACS ETNs. According to the SEC examination, deficiencies
were found in some brokerage firms’ supervisory and sales practices
related to the determination of “suitability” and “levels of
concentration” in customer accounts.
Our investigation relates to UBS’ sales practices related to its
proprietary ETRACS ETNs. UBS’ violations of FINRA sales practice
violations may include misrepresentations
and omissions of material facts, conflicts
of interest, unsuitable
investment advice, securities
concentration or the failure
to supervise its financial advisors. Our investigation relates to
investments in UBS ETRACS ETNs designed to track the Price of Oil, MLP
Pipelines, Indexes, Commodities Baskets, and in some instances leveraged
up to 200%.
About Klayman & Toskes, P.A.
Klayman & Toskes, P.A., an experienced, qualified and nationally
recognized securities litigation law firm, is currently investigating FINRA
sales practice violations of UBS related to the sale of its
proprietary UBS ETRACS ETNs. Investors who have knowledge or experience
related to the sales practices of UBS and its financial advisors’
recommended investment in UBS ETRACS ETNs, contact Steven D. Toskes,
Esq. at 888-997-9956.
Destination: http://nasd-law.com/the-securities-arbitration-law-firm-of-klayman-toskes-p-a-announces-investigation-into-ubs-etracs-etns-linked-to-declining-energy-and-commodity-prices/
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