Notice to UBS ETRACS Monthly Pay 2x Leveraged Closed-End Fund ETN (Symbol: CEFL) investors. The Haselkorn & Thibaut, P.A. law firm is a nationwide investment fraud law firm investigating potential sales practice violations by financial advisors who were recommending ETRAC CEFL exchange-traded notes to investors.
The recent trading in CEFL has been in the $5.00/share range and even lower. Over the second half of 2016, CEFL was generally trading at or above $16.00/share, and that trend continued to 2018. In early 2018 the price level generally in the $15.00/share range until the 4th quarter. By early 2019 the price level steadied around $14.00/share or so and remained in that general range into early 2020. In early March 2020, it was still trading at or above $13.00/share. The year-to-date total return is currently over (-70%).
CEFL FINRA Lawsuit
Table of Contents
The Haselkorn & Thibaut, P.A. law firm is a nationwide investment fraud law firm (www.investmentfraudlawyers.com) investigating potential sales practice violations by financial advisors who were recommending CEFL and many similar ETRAC exchange-traded notes sold to investors.
For investors, this is a particularly harsh blow as these are the types of investments that were often recommended by financial advisors to clients who were looking for income in their portfolios (often retirees or similarly conservative investors). This was likely a recommendation that was expected to be low volatility and reasonably conservative, now investors are faced with substantial losses as a result of a level of risk to their original investment principal that was probably never adequately disclosed (if it was ever disclosed at all) by their financial advisors.
As some strategies are leveraged in the hopes of increasing potential returns, they also increased the level of risk, and some investors may not have been advised of those inherent risks as well. Although Financial advisors may claim that these were unforeseen market events, the reality is that these are similar risks to those experienced in the 2008-2009 financial crisis. These potential risks were material risks that should have been adequately disclosed to clients before recommending these investments individually or as part of a portfolio or investment strategy.
Many of these investments were sold by UBS Financial advisors and other financial advisors without proper risk disclosures, as these are considered very risky and complicated (some even speculative because of the leverage) securities. In cases where these were recommended to retirees or similar conservative income-seeking investors there is the potential for sales practice abuse as a result of misrepresentations, but more often as a result of omissions of material fact, or due to a lack of proper supervision.
Investors Seeking to Recover DVHL Losses
For some investors, a private FINRA arbitration customer dispute enables them to bring a claim and potentially recoup their investment losses of DVHL. These customer disputes typically involve only paper discovery and no depositions, and they are generally faster and more efficient compared to traditional court litigation, as they provide a private forum to resolve disputes more quickly and efficiently. Read more on how to sue a financial advisor.
About Haselkorn & Thibaut, P.A.
Haselkorn & Thibaut, P.A. has filed numerous (private arbitration) customer disputes with the Financial Industry Regulatory Association (FINRA) for customers who suffered investment losses relating to issues similar to those matters mentioned above. There are typically no depositions involved, and those cases are usually handled on contingency with no recovery, no fee terms. Experienced attorneys at Haselkorn & Thibaut, P.A., are available for a free consultation as a public service. Call today for more information at 1-800-856-3352.