Reuters reported the award on Monday. Finra released the documents today.
UBS has had a mixed record with arbitrating Lehman-issued structured notes, winning at least one case where an investor claimed a security was unsuitable. Finra ruled in 2011 that the company had to pay about
“UBS always tried to impress upon the reps their wonderful due diligence and that they looked into this and blessed each of these issuers” whose products they recommended, said
Dulin, who’s now a broker for
“UBS is disappointed with the panel’s decision, and believes it to be legally and factually incorrect,” said
Banks create structured notes by packaging debt with derivatives to offer customized bets to retail investors while earning fees and raising money. Derivatives are contracts with values derived from stocks, bonds, commodities and currencies, or events such as changes in interest rates or the weather.
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