Numerous victims due to aggressive marketing of UBS RTPF products

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More and more UBS clients are reporting significant losses from so-called RTPF products. Various media have already taken up the issue. There are indications of incorrect advice and inadequate risk disclosure. The Swiss Association for the Protection of Investors (Schweizerischer Anlegerschutzverein, SASV) supports injured parties with possible legal action.

 

What are RTPF products?

RTPF stands for ‘Range Target Profit Forward’. These are structured currency derivatives in which regular payments are only made if a certain exchange rate remains within a predefined range. As soon as this range is exceeded or undershot, the investor is exposed to considerable risk of loss - in many cases far in excess of the capital originally invested.

 

Why are these products dangerous?

The products are highly complex and almost incomprehensible to laypeople. At the same time, they have an asymmetrical risk/reward profile: The returns are limited, the losses potentially unlimited. Many clients were not aware of the risks, as the products are often presented as conservative or high-yield additions to asset management. In several cases known to the SASV, there were massive losses or even margin calls.

 

What happened at UBS?

Last week it became public that numerous UBS clients have suffered considerable financial losses as a result of trading in RTPF products. Private clients with medium to large assets are particularly affected, including older people without specialist knowledge. According to the Sonntagszeitung, RTPF products have already been sold to clients with assets of ‘only’ CHF 600,000. Due to the sudden obligation to make additional contributions, these customers are now effectively ruined.

 

According to Inside Paradeplatz, these products were marketed aggressively and it is suspected that investors were not always informed of the risks involved in investing in such products. As reported by the Neue Zürcher Zeitung NZZ, UBS is currently conducting its own investigation into whether the client advisors responsible fulfilled their duties - doubts are justified.

 

What is FINMA doing?

The Swiss Financial Market Supervisory Authority (FINMA) is aware of the case. According to its own statement, it is currently monitoring developments. However, FINMA does not wish to comment on the details.

 

What can affected investors do?

Investors who have subscribed to RTPF products should carefully review their contractual and advisory documents and seek legal advice if necessary. Such products have no place in the portfolios of private investors, at least if they have a moderate or even conservative risk profile.

 

The SASV is also monitoring developments and calls on all those affected to get in touch using the following form: