The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Announces Investigation into UBS ETRACS ETNs Linked to Declinin...
October 09 2015 - 4:01PM
Business Wire
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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version on businesswire.com: http://www.businesswire.com/news/home/20151009005911/en/
Klayman & Toskes, PASteven D. Toskes, Esq.,
888-997-9956stoskes@nasd-law.comwww.nasd-law.com
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