The law firm of Oakes & Fosher is currently investigating allegations levied against securities broker Andrew Perry concerning the Yield Enhancement Strategy–also known as the YES strategy.

The Yield Enhancement Strategy

The YES strategy was a controversial options investment strategy implemented by UBS Financial Services. This strategy is presented to investors as a way to increase returns without exposing their principal investment to significant risks; however, nothing could be further from the truth.

Most investors are not made aware of the fact that the success of this strategy is directly linked to the stability of the equity markets. Essentially the investor purchases a short, uncovered option, which means the investor is betting against a separate party regarding the future success or failure of a specific security. Through this system, the investor makes money through premiums paid by the party that purchases the long option. These premiums disguise themselves as consistent returns making the investor think the YES strategy is amazing.

Securities brokers like Andrew Perry market this strategy to unsuspecting investors without informing them of what might happen if the market fluctuates. When an individual purchases a short option, and the value of the security increases or decreases drastically from the agreed upon strike price, depending on whether it was a “call” or “put” option, the investor can now owe a substantial amount of money to the owner of the long option, depending on the change in value.

Andrew Perry 

Andrew Perry is a New Jersey based securities broker. He has worked in the securities industry for thirty years. During his career, he has been registered with seven different securities firms.

His Registrations 

  • Thomson Mckinnon Securities (1987-1988)
  • Prudential Securities (1989-1991)
  • Salomon Brothers (1991-1995)
  • Lehman Brothers (1995-1998)
  • Merrill Lynch (1999-2002)
  • Deutsche Bank Securities (2002-2008)
  • UBS Financial Services (2008-Present).

Allegations

Andrew Perry’s publicly available FINRA BrokerCheck report shows that he is currently the subject of two pending customer complaints.

  • In February 2019, a customer alleged unsuitability and misrepresentation in connection with the YES strategy. The customer is seeking $1 million in damages.
  • In March 2019, another customer alleged unsuitability and misrepresentation connected with the Yield Enhancement Strategy. This customer is seeking $650,000 in damages.

What Does This Mean?

This strategy is highly unsuitable for investors looking for modest risk. The reason that brokers like Andrew Perry recommend it is because they can disguise is it as a low risk investment with consistent returns. However, this strategy cannot be implemented without substantial risk, and it is this fact that Andrew Perry allegedly left out when selling these products to the above mentioned customers.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker negligence or misconduct. Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Andrew Perry, or UBS Financial’s Yield Enhancement Strategy, please contact Oakes & Fosher for a free and private consultation.