UBS Financial Services Ordered to Pay Over $15 Million by SEC for Reverse Convertible Notes
Have you lost money with UBS Financial Services investing in reverse convertible notes? We are investigating allegations made by the Securities and Exchange Commission (SEC) against UBS Financial Services. The SEC filed a regulatory action against UBS, alleging that they failed to reasonably supervise its representatives’ sales of reverse convertible notes to customers.
The SEC alleged that from 2011 to 2014, UBS sold approximately $10.7 worth of reverse convertible notes. The SEC alleged that UBS failed to adequately educate and train its representatives regarding the risks and characteristics of reverse convertibles, and that led to some unsuitable investment recommendations to its customers. To settle these allegations, UBS agreed to disgorge $8,227,566 and prejudgment interest of $798,316, as well as $6,000,000 civil penalty.
Brokerage firms like UBS Financial Services have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado, the Seattle area, Chicago, and Ann Arbor, Michigan. We represent investors in FINRA arbitration proceedings in all 50 states. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including UBS Financial Services.
Click to view: UBS SEC Order
HAVE YOU LOST MONEY WITH UBS FINANCIAL SERVICES IN REVERSE CONVERTIBLES?
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Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.