Structured Products - Law Offices of Robert Wayne Pearce

Feb 1, 2021

Woodbury, New York Securities Lawyer For Structured Product Investment Dispute

Did Trident Partners Ltd. Cause You Investment Losses? Trident Partners Ltd. submitted a Letter of Acceptance, Waiver, and Consent (AWC) in which it has been censured and received a fine of $50,000 by the Financial Industry Regulatory Authority (FINRA) for failing to properly supervise the sales and suitability of steepeners, a complex, structured product. According to FINRA’s findings, Trident Partners, headquarters in Woodbury, New York, failed to establish, maintain, and enforce a supervisory system to ensure that recommendations for its sale of steepeners were suitable. Steepeners are complex, structured products that are typically longer-term notes and certificates of deposit with maturities ranging from 10 to 30 years and are callable by the issuers after a short, pre-specified time. They pay higher interest rates, but if the steepener is not called after a year, the rates can fall as low as zero, earning no returns for the remainder of the term. FINRA alleged that during the relevant period, steepeners were a significant part of Trident Partners’ business, with approximately 1,600 transactions accounting for at least 10% of commissions generated. FINRA’s findings stated, Trident Partners’ supervisory system was unreasonable due to the following: (1) there were no written supervisory procedures (WSPs) specific to steepeners; (2) Trident Partners did not have a system in place to conduct due diligence and evaluate the steepeners it intended to sell; (3) Trident Partners did not provide its representatives with training or guidance necessary to determine the risks and suitability of these complex products; and (4) Trident Partners did not use a supervisory system for monitoring suitability and over-concentration of these products in customer accounts. Trident Partners, without admitting or denying FINRA’s findings, was censured and fined $50,000. Do You Need A Securities Lawyer For Structured Product Investment Dispute? New York has thousands of stock brokerage firms and investment advisory offices. With so many stock brokerage firms and investment advisory offices, comes the potential for their stockbrokers, financial advisors, and other representatives to misrepresent and mislead investors about investing in Structured Products and engage in all kinds of stockbroker misconduct which violates Federal and New York securities laws and Financial Industry Regulatory Authority (FINRA) rules and stock brokerage firms policies and procedures. Experienced Securities Attorneys For Investors With Structured Product Losses In FINRA Arbitrations Throughout New York and Nationwide. Structured products are complex investments and do not represent ownership of any portfolio of assets but rather are promises to pay made by the product issuers. If the issuer, like Lehman Brothers, goes bankrupt, the principal protected notes become worthless. Structured notes with principal protection typically reflect the combination of a zero-coupon bond, which pays no interest until the bond matures, with an option or other derivative product whose payoff is linked to an underlying asset, index or benchmark. In the past, they were only offered to sophisticated institutional investors in negotiated transactions. Today, more and more Structured Products are advertised to generate higher yields for income seeking retirees with promises of hedges to protect principal. The underlying asset, index or benchmark of Structured Products can vary widely from commonly cited market benchmarks to foreign equity indices, currencies, commodities, spreads between interest rates or “hybrid” baskets of various asset types which many stockbrokers do not fully understand and consequently misrepresent the risk associated with those investments. Did your New York stockbroker or investment advisor misrepresent or mislead you about the nature, mechanics or risks in making a Structured Product investment or make an unsuitable recommendation that you invest in a Structured Product or otherwise mismanage your investment account? If so, you need to hire an experienced, highly-rated and nationally recognized FINRA securities arbitration law attorney who understands these very complex and risky investments. You will also need an experienced lawyer who knows FINRA rules and procedures inside and out and how to handle these FINRA arbitration cases and other complex legal issues. By hiring a top rated and highly successful lawyer like Robert Wayne Pearce with over 40 years of experience with Structured Products by practicing securities law on both sides of the table in FINRA arbitration proceedings, you will clearly see that Attorney Pearce doesn’t just handle cases—he aggressively represents investors and is one of the best attorneys to recover your investment losses in Structured Products and all types of stockbroker misconduct in FINRA arbitration proceedings! At The Law Offices of Robert Wayne Pearce, P.A., we represent investors in all kinds of Structured Product investment disputes in FINRA arbitration and mediation proceedings. We handle a wide range of practice areas such as fraud and misrepresentation, breach of fiduciary duty, failure to supervise, and unsuitable recommendations of Structured Products. Attorney Pearce and his staff represent investors throughout New York, and across the United States on a CONTINGENCY FEE basis, which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award. Se habla español Free Initial Consultation With An Experienced Structured Product Investment Attorney Serving New York Residents In FINRA Arbitrations The Law Offices of Robert Wayne Pearce, P.A. are highly experienced attorneys who successfully handle Structured Product cases and other securities law matters and investment disputes in FINRA arbitration proceedings, and who work tirelessly to secure the best possible result for you and your case. For dedicated representation by a lawyer with over 40 years of experience and success in Structured Product cases and all kinds of securities law and investment disputes serving New York citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.

Mar 13, 2020

Recover Your UBS Yield Enhancement Strategy (YES) Investment Losses!

Robert Wayne Pearce, P.A. is investigating and representing investors nationwide that were sold investments in UBS Financial Services Yield Enhancement Strategy (YES) program. UBS offered the high-risk YES program to customers whose net worth was at least $5 million. UBS financial advisers across the United States presented the YES program as a safe way to earn additional income by using existing assets at UBS as collateral. UBS further represented to its clients that the YES program had “excellent risk metrics” and would allow its clients to increase returns, while reducing risk. Unfortunately, many UBS brokers failed to adequately understand and/or disclose the risks associated with this high-risk investment program. It also appears the UBS YES program was mismanaged. UBS presented its YES program as using a “market neutral” options strategy, which means that it is not a directional wager that the price of the underlying asset will increase or decrease in value. The strategy instead seeks to profit from a relative lack of volatility in the price of the underlying asset. Contrary to UBS’ presentation of the YES program, we believe the YES managers actively engaged in market timing and took directional positions on the market and suffered significant losses as a result. We believe the UBS YES program was, in fact, an aggressive options strategy. Consequently, YES posed a significant risk for investment portfolios, especially those that were over-concentrated in these securities.

Mar 9, 2020

Recover Your Steepener Investment Losses!

Robert Wayne Pearce, P.A. is investigating and representing investors nationwide that were sold steepeners, which are notes or CDs that pay varying levels of interest depending on the steepness or flatness of the yield curve. When the yield curve flattened in 2018, these steepeners rapidly declined in value and either stopped paying interest or paid much less interest. In 2019, the yield curve inverted and short term interest rates rose to a higher level than long term interest rates. This yield curve inversion caused even more losses. The negative impact on investors in the following types of structured products has been significant: Structured CDs, Market-Linked CDs, Leverage Callable CMS Curve Linked Notes, Callable Quarterly CMS Spread-Linked Notes, Callable Variable Rate Range Accrual CDs, Callable Interest Rate Spread CDs, Callable CMS Spread Notes, and Senior Callable CMS Steepener Notes.

Oct 23, 2017

Trident Partners Fined by FINRA for Failure to Supervise Steepener Sales

Trident Partners Ltd. has submitted a Letter of Acceptance, Waiver, and Consent (AWC) in which it has been censured and fined $50,000 by the Financial Industry Regulatory Authority (FINRA) for failing to adequately supervise the sales and suitability of steepeners, a complex, structured product. Trident Partners, headquartered in Woodbury, New York, was found by FINRA to have failed to establish, maintain, and enforce a supervisory system to ensure that recommendations for its sale of steepeners were suitable. Steepeners are complex, structured products that are typically longer-term notes and certificates of deposit with maturities spanning from 10-30 years. They are typically callable by the issuers after a short, pre-specified time. They pay higher interest rates, but if the steepener is not called after a year, the rates can drop to as low as zero, earning no returns for the remainder of the term. FINRA found that during the relevant period, steepeners were a significant part of Trident Partners’ business, with approximately 1,600 transactions and accounting for at least 10% of commissions generated.

Nov 9, 2015

Wells Fargo Advisors Fined for Unsuitable STRATS Recommendations

The Financial Industry Regulatory Authority (FINRA) has ordered Wells Fargo Advisors, LLC (Wells Fargo) to pay a $500,000 fine and $241,974.34 plus pre-judgment interest in restitution to customers for allegedly making unsuitable recommendations to customers to purchase structured repackaged asset-backed trust securities (STRATS). From approximately 2005 to 2012, Wells Fargo made unsuitable STRATS recommendations to its retail customers, selling nearly $12 million worth of the complex structured products. According to FINRA, Wells Fargo failed to properly educate its registered representatives about the risks associated with STRATS and that the customers had the potential to suffer significant losses. FINRA also found that Wells Fargo’s internal-use STRATS brochures were not fair and balanced and neglected to provide an appropriate basis for evaluating the risks and therefore the suitability of the STRATS. Wells Fargo did not admit to or deny FINRA’s findings.

May 13, 2015

JP Morgan under Investigation for Possible Breach of Fiduciary Duty in Mutual Fund Sales

JPMorgan Chase & Co (JPMorgan) is under investigation by the Securities and Exchange Commission (SEC) about a potential conflict of interest and breach of fiduciary duty with respect to its sales of mutual funds and other proprietary products. According to InvestmentNews, JPMorgan received subpoenas and inquiries from the SEC and other government authorities about the firm’s sale and recommendations of mutual funds and other proprietary investment products in its wealth management business. At question is the alleged breach of fiduciary duty, which requires that financial advisors put their customers’ best interests ahead of their own.

Mar 6, 2015

Former UBS Broker Decries the Marketing and Sale of Structured Products to Conservative Investors

Michael Hadden, a former broker with UBS Wealth Management (UBS), has made claims that UBS allegedly made it “impossible” for his to continue working due to “… its various unethical practices with respect to customers …” as stated in his original arbitration claim with the Financial Industry Regulatory Authority (FINRA). Mr. Hadden has asked a federal court, the U.S. District Court for the Western District of Kentucky, to overturn FINRAs arbitration award which ordered him to repay over $300,000 in bonus money, attorneys’ fees and interest. According to Mr. Hadden’s court filings, UBS would allegedly mislabel conservative investors as moderate in order to avoid future restitution and penalties. As Mr. Hadden noted in his court documents, “… the risk reporting system is done … to protect UBS from future claims of lack of suitability from the client or FINRA.”

Dec 5, 2014

Parkland Securities Fined $100,000 By FINRA for Numerous Failure to Supervise Violations

Parkland Securities, LLC (Parkland) f/k/a Sammons Securities Company, LLC, was fined $100,000 by the Financial Industry Regulatory Authority (FINRA) for numerous failure to supervise violations. Without admitting or denying the findings, Parkland consented to the sanctions and to FINRA’s findings. FINRA found that Parkland relied too heavily upon an outside entity with a limited number of persons to conduct all of the supervisory and compliance functions for its 1,274 registered representatives and 854 branch offices. Also, FINRA found that Parkland’s system for reviewing its employees’ emails was inadequate, as was its system for the supervision of its customers’ confidential information, such as ensuring its representatives were using passwords, anti-virus software and anti-spyware tools.