National investment loss lawyers KlaymanToskes is investigating UBS Financial Services Inc. on behalf of investors whose cash positions were negligently placed into low-yield “sweep accounts,” despite the availability of significantly higher-yielding alternatives. UBS Financial allegedly defaulted client cash into its UBS Deposit Account Sweep Program and the UBS Insured Sweep Program, which paid ultra low interest, instead of allocating funds to more suitable options.
UBS’ failure to act in the best interest of its clients allegedly resulted in millions of dollars in lost interest income for affected investors. KlaymanToskes is currently representing investors seeking to recover losses tied to low-interest-bearing accounts and negligent cash management by brokerage firms and their financial advisors.
If you had $1,000,000 or more placed into low-interest bearing sweep accounts, contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
From 2020 through 2024, UBS Financial Services allegedly swept billions of dollars in client cash into its Deposit Account Sweep Program and Insured Sweep Program, which paid uncompetitive interest rates as low as 0.01%. According to a class action lawsuit, UBS failed to ensure that client cash received a reasonable return, while the firm simultaneously earned substantial profits from loaning out those same funds through affiliated banks.
The complaint alleges that UBS deliberately prioritized firm profits over client interests, in violation of the firm’s fiduciary obligations and the duty of care required under Regulation Best Interest (Reg BI). The lawsuit also points to internal UBS disclosures acknowledging the profitability of these sweep programs for the firm. UBS Financial Services is currently facing ongoing legal scrutiny over these practices, and affected investors are encouraged to explore their options for recovery.
Investors should know that class-actions may take many years to resolve, and that payouts are generally heavily undervalued. KlaymanToskes previously conducted a detailed study of securities arbitration versus class action and concluded that Financial Industry Regulatory Authority (FINRA) arbitration claims traditionally obtain an overall higher rate of recovery as opposed to participating and waiting for any recovery in a class action lawsuit.
KlaymanToskes is currently representing investors in claims related to negligent cash management practices and low-interest sweep accounts at major brokerage firms. Investors—especially retirees and high-net-worth individuals—may have suffered significant lost interest income as a result of being placed in low-yield programs like UBS’ Deposit Account Sweep Program instead of higher-yielding options.
If you held in excess of $1,000,000 at UBS, and received below-market interest rates in sweep accounts, you are entitled to pursue a financial recovery through FINRA arbitration as opposed to participating and waiting for any recovery in a class action lawsuit. Contact securities attorney Steven D. Toskes at (888) 997-9956 or email investigations@klaymantoskes.com for a free and confidential consultation to discuss your recovery options.