SBNY Autocallable Notes from UBS – Securities Investigation 

Concerned about your investment losses in SBNY Autocallable Notes from UBS? 

Have you suffered losses investing in SBNY Autocallable Notes from UBS? If so, the securities attorneys at the White Law Group may be able to help you.

UBS AG Trigger Yield Optimization Notes (Linked to the common stock of Signature Bank due January 16, 2025) is a structured note sponsored by UBS. Signature Bank (SBNY), a New York-based regional bank closed suddenly last month, marking the third-biggest bank failure in U.S. history.  

SBNY Autocallable Notes from UBS– Extremely High-Risk Investment 

According to the prospectus, the SBNY Autocallable Notes from UBS are significantly riskier than conventional debt instruments. “The issuer is not necessarily obligated to repay the full principal amount of the Notes at maturity, and the Notes may have the same downside market risk as the underlying asset. This market risk is in addition to the credit risk inherent in purchasing a debt obligation of UBS.  

You should not purchase the Notes if you do not understand or are not comfortable with the significant risks involved in investing in the Notes, according to the prospectus. You may lose a significant portion or all your initial investment in the Notes.” 

Autocallable Notes from UBS – What are they? 

SBNY Autocallable notes from UBS are a type of financial instrument that allows investors to potentially earn higher returns than traditional investments, such as bonds or stocks, while also providing some downside protection. They are also high risk, complex products. 

When you purchase an Autocallable structured note, you are essentially buying a bond-like investment that is linked to an underlying asset or index, such as a stock market index. The note typically has a maturity date, which is the date on which you will receive your principal investment back. In this case, the underlying is Signature Bank. 

However, the note also has an “auto-call” feature, which means that if the underlying asset or index reaches a certain predetermined level at any point before the maturity date, the note will be “called” and you will receive a predetermined payout, which is typically higher than the amount of interest you would have earned if the note had been held to maturity. 

Autocallable structured notes can be attractive to investors who are looking for higher potential returns than traditional investments but still want some downside protection. However, they are also complex financial instruments and may not be suitable for all investors. 

Other Risks of Investing in AutoCallable Structured Notes  

• Autocallable structured notes are typically issued by a financial institution, so there is a risk that the issuer may default on their obligations. This could result in a loss of principal for the investor. 
• The value of Autocallable structured notes is dependent on the performance of the underlying asset or assets. If the market experiences significant fluctuations, the value of the notes may decline. 
• They may not be easy to sell, particularly if the market for them is limited or if there are restrictions on the resale of the notes. 
• Autocallable structured notes are complex products that may be difficult for investors to understand. This could lead to misunderstandings about the risks associated with the notes or the terms of the investment. 
• These notes typically have a call feature that allows the issuer to redeem the notes early. If the notes are called early, the investor may miss out on potential future gains. 

Recovery of Investment Losses  

The White Law Group is investigating the liability that brokerage firms may have for recommending complex, often extremely high-risk, structured notes such as SBNY Autocallable Notes from UBS. 

With the market in turmoil, many investors who purchased autocallable structured notes believing they provided downside protection or were akin to bonds because of the dividend component are instead finding that these products can indeed suffer enormous losses.  

Brokers often pitch structured products, as providing “downside protection” against losses to a related index while allowing modest upside gain potential. Of course, this is only true if the value of the index doesn’t fall below a predetermined price. If the price falls below that point, the losses in structured notes can still be huge.  

These products typically pay a high fee to the financial advisors that sell them.  

Brokerage firms have two main duties in recommending structured callable notes linked to equity investments or indexes.  First, brokerage firms are required to perform adequate due diligence on any product they recommend. Second, brokerage firms are required to ensure that all recommendations made are suitable for their client in light of the client’s age, investment experience, net worth, income, and investment objectives.  

If a brokerage firm fails to do either of these things, the firm can be held responsible in a FINRA arbitration claim.  

Hiring a Securities Attorney  

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.    

Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.     

With over 30 years of securities law experience, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions attempt to recover their investment losses.     

The firm reviews securities fraud cases throughout the country.  

If you have suffered losses investing in SBNY Autocallable Notes from UBS, the securities attorneys of The White Law Group may be able to help.  For a free consultation, call the firm’s office at 888-637-5510.   

For more information on The White Law Group, please visit our website at https://whitesecuritieslaw.com.