UBS Financial Services

UBS Exchange Traded Access Securities (ETRACS)

UBS Financial Services underwrites, manages and markets the sale of Market-Linked Notes issued by affiliated banks, wholly owned by UBS A.G. UBS ETRACS were recommended by UBS financial advisors to customers as a stable source of income. Investors do not understand the risks associated with Market-Linked Notes and UBS was responsible for providing a fair and balance representation of the risks associated with this investment. Most investors do not understand that the interest credited to their account is far more complex than a simple interest rate when it is based on a volatile security, commodity, index or currency. UBS ETRACS investments that tracked, Oil Prices, Energy Pipelines, or Commodity Baskets resulted in significant losses.

How Do UBS ETRACS Exchange-Traded Notes (ETNs) Work?

UBS manages ETRACS ETNs to generate greater returns through the use of embedded derivatives designed to track the performance of a volatile security, index, commodity or currency, many times without any principal protections. UBS financial advisors solicit investments based on these potentially greater returns without properly disclosing the risks associated with UBS ETRACS ETNs. UBS provides incentives for the sale of proprietary products, such as UBS ETRACS ETNs issued by affiliated banks. UBS ETRACS ETNs have substantial fees and/or commissions paid to affiliated companies for banking, underwriting and asset management. UBS Financial Services failed to properly explain the risks associated with UBS ETRACS ETNs whose performance and interest crediting is tied specific security, commodity, index or currency, sometimes with leverage up to 200%.

UBS Financial Services underwrites, manages and markets to its customers billions of dollars in Market-Linked Notes including the following:

• UBS ETRACS Alerian MLP Index ETN (NYSE Arca: AMU)
• UBS ETRACS 2X Monthly Leveraged S&P MLP Index ETN (NYSE Arca: MLPV)
• UBS ETRACS Alerian MLP Infrastructure Index ETN (NYSE Arca: MLPI)
• UBS ETRACS 2X Monthly Leveraged Long Alerian MLP Infrastructure Index ETN (NYSE Arca: MLPL)
• UBS ETRACS CMCI Energy Total Return ETN (NYSE Arca: UBN)
• UBS ETRACS CMCI Total Return ETN (NYSE Arca: UCI)
• UBS ETRACS Bloomberg Commodity Index Total Return (NYSE Arca: DJCI)

UBS Financial Services firms may have failed to properly explain the risks associated with UBS ETRACS ETNs whose performance and interest crediting is tied specific security, commodity, index or currency. Did you invest in UBS ETRACS ETNs designed to track the Price of Oil, MLP Pipelines, Commodities Baskets, perhaps leveraged up to 200%?

KlaymanToskes has represented investors in Financial Industry Regulatory Authority (FINRA) claims against UBS Financial Services with claims for FINRA sales practice violations related to the sales of structured securities products, also known as Market-Linked Notes. Our clients’ claims for damages relate to FINRA sales practice violations of misrepresentations and omissions of material facts, conflicts of interest, unsuitable investment advice, securities concentration and failure to supervise. Visit our FAQs to learn more about our process and get answers to frequently asked questions.