NEW YORK--(BUSINESS WIRE)--The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.nasd-law.com, announced today that it has commenced an investigation into UBS’ (NYSE:UBS) sales practices regarding reverse convertible notes, in light of the $15 million settlement UBS paid to the SEC.
These reverse convertible notes were derivative investments which were tied to individual stocks. According to the SEC, these notes were sold to more than 8,700 of UBS’s customers from 2011 to 2014, many of which were inexperienced and unsophisticated. The notes were sold under a variety of different names such as:
Trigger Yield Optimization Notes
Trigger Autocall Optimization Securities
Trigger Phoenix Autocall Optimization Securities
Airbag Yield Optimization Securities
Airbag Autocallable Yield Optimization Notes
According to securities attorney Lawrence L. Klayman, “the scope of our investigation is related to reverse convertible notes which UBS sold to clients despite investment objectives and risk tolerances that should have prohibited such investments from being made.” Additionally, Mr. Klayman explains, “UBS failed to adequately train and supervise its brokers in order to safeguard unsophisticated, risk averse investors from buying these unnecessarily risky reverse convertible notes.”
K&T is investigating UBS’ conduct with respect to unsuitable recommendations, misrepresentations and omissions, and failure to supervise. The investigation is focused on the adequacy of UBS’ supervisory system for the reverse convertible notes and the manner in which UBS’ representatives solicited investors to purchase these unsuitable investments.
The sole purpose of this release is to investigate the sales practices of UBS in connection with the sale of reverse convertible notes to their customers. Current and former customers of UBS who purchased reverse convertible notes that have information relating to the manner in which the firm represented these products, are encouraged to contact Lawrence L. Klayman, Esq. or Raymond Gentile, Esq. of Klayman & Toskes at (888) 997-9956, or visit our website at www.nasd-law.com.
About Klayman & Toskes, P.A.
K&T is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm represents high net-worth, ultra-high-net-worth, and institutional investors, such as non-profit organizations, unions, public and multi-employer pension funds. K&T has office locations in California, Florida, New York and Puerto Rico.