The claim, filed by The White Law Group, was submitted to FINRA Dispute Resolution on behalf of two retired Illinois residents alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim further alleges that UBS unsuitably invested and over-concentrated its clients in Barclays iShares.
Before recommending an investment, a broker-dealer has a responsibility to ensure that the investment is appropriate for the client in light of the client's age, investment experience, net worth, and investment objectives. This duty is often called the "Know Your Customer Rule." It is alleged that UBS failed to assess whether the Barclays iShare investments were appropriate for these clients in light of their particular situation.
The Barclays iShares that UBS recommended to these clients include iShare Inc. MSCI Japan Index Fund, iShares Trust Dow Jones U.S. Financial Sector Index, iShares Trust Dow Jones U.S. Basic Materials Sector Index Fund, iShares Down Jones U.S. Consumer Services Sector Index Fund, iShares Inc MSCI EMU Index Fund, iShares NASDAQ Biotechnology Index Fund, iShares Inc. MSCI Pacific Ex-Japan Index Fund, and iShares Lehman Aggregate Bond Fund.
FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.
For more information on the claim filed by The White Law Group, please contact the firm's Chicago office at 312-238-9650.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida. For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.