Naples, FL., — Vernon Litigation Group, based in Naples, Florida and Kristian Kraszewski, Esq. have joined forces again to file a FINRA arbitration claim involving structured product sales by UBS. Our client has suffered losses due to improper concentrated recommendations in structured products. To make matters worse, the losses occurred when the global markets were enjoying record returns. Structured products are esoteric investments that pay high commissions to the brokers and brokerage firms that sell these investments.
Structured products are subject to the specifications of NASD Notice to Members 05-59. Notice to Members 05-59 reminds members offering structured products of their obligations to: (1) provide balanced disclosures in promotional efforts; (2) ascertain accounts eligible to purchase structured products; (3) deal fairly with customers with respect to derivative products; (4) perform a reasonable basis suitability determination; (5) perform a customer specific suitability determination; (6) supervise and maintain a supervisory control system; (7) train associated persons regarding the features, risks, and suitability of these products.
The arbitration claim contends that UBS failed to follow these industry requirements in its sales to our client. The recommendations caused losses of approximately $99,000. If you have suffered unnecessary losses due to structured products, please contact us. One of our securities attorneys will happily provide you with a free overview of any potential claims you may have regarding your broker’s recommendations in structured products.
Visit our securities arbitration and litigation claims page for more information.