LAW OFFICES OF DAVID HARRISON, P.C. ARE INVESTIGATING UBS ETRACS
- posted: Jul. 09, 2021
Law Offices of David Harrison, P.C. are investigating UBS Financial Services, Inc. (“UBS”) for possible sales practice violations, including but not limited to failing to disclose material risks associated with its ETRACS.
ETRACS Exchange Traded Notes are senior, unsecured, unsubordinated debt securities that are designed to track the total return of a specific market index. Exchange-Traded Notes (“ETNs”) different from Exchange-Traded Funds in that ETNs are similar to debt that issuers release tied to the performance of a particular asset class. ETRACS are leveraged instruments that borrow a dollar for every dollar it owns and uses those two dollars together to generate as much yield as possible from business development companies, closed-end funds, and mortgage real estate investment trusts.
Many stockbrokers may have solicited ETRACS to conservative retirees due to the high dividend payouts, without disclosing the riskiness of losing substantial irreplaceable principal. These securities are geared to speculators rather than for conservative risk-averse investors.
ETRACS have incurred significant losses, way in excess of market indices. Yesterday, March 24, 2020, UBS announced mandatory redemption of many of its ETRACs, notifying investors that they “will suffer a loss on their investment.”
We are investigating the following ETRACS:
Contact the Law Offices of David Harrison, P.C., for a free consultation if you believe your stockbroker made material misrepresentations or omissions regarding the above-mentioned ETRACS. David Harrison, Esq. is a former Morgan Stanley in-house attorney, where he represented the firm from allegations of stockbroker sale practices violations. Mr. Harrison also is a former New York City assistant district attorney where his responsibilities included directing on-site police investigations, grand jury prosecutions, drafting and presenting search warrants and prosecuting individuals accused of fraud, domestic violence, and other crimes.