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YES Investment Strategy: Berger Montague Investigates Suitability Claims Against Registered Representatives and Broker Dealers Recommending and Employing YES Investment Strategy

PHILADELPHIA, May 18, 2020 – Berger Montague is investigating suitability and breach of fiduciary duty claims against registered representatives and broker dealers, such as UBS, Credit Suisse, and Merrill Lynch, that recommended the Yield Enhancement Strategy (“YES”) to their customers. In many instances, registered representatives and broker dealers did not properly disclose to customers the speculative and risky nature of the YES investment strategy or misrepresented it as a low-risk investment strategy that would increase cash flow, yield, and/or return.

If the YES strategy was recommended by your registered representative or broker dealer and you have suffered losses as a result, please contact our attorneys for a free confidential consultation. Our experienced securities litigation attorneys, Donnell Much, Esq. at (215) 875-4667 or Andrew Abramowitz, Esq. at (215) 875-3015, are available to assist, or fill out the form on this page for more information.

The YES strategy consists of using investors’ or customers’ assets as collateral in margin accounts to execute an options strategy called “iron condor.” In an iron condor options strategy, the broker purchases separate options contracts with the same expiration date but different exercise prices – usually for an index, such as the S&P 500 – where two spreads are created by selling calls and puts. In many instances, investment advisors and brokers did not properly disclose to their customers that such a complicated, risky, and sensitive investment strategy was being employed in their accounts. Customers may have been charged large, duplicative fees for participating in the YES strategy where they are assessed fees for their participation and charged a percentage fee on the assets used as collateral in their margin accounts.

Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for five decades and serves as lead counsel in courts throughout the United States.

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