Did you lose money investing in VelocityShares Long LIBOR ETN (ULBR)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who suffered losses investing in VelocityShares Long LIBOR ETN (ULBR) at the recommendation of their financial advisor. If you suffered losses investing in the investment, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the brokerage firm that recommended the investment.
According to reports, Citigroup announced the shutdown VelocityShares Long LIBOR ETN (ULBR).
Holders of the ETN will receive a cash payment in an amount equal to the closing indicative value on the final valuation date of the Optional Acceleration Valuation Period. The Optional Acceleration Valuation Period will be the period of five consecutive index business days beginning on April 7, 2020 and expected to end on April 14, 2020. Final Day of trading for the fund is expected to be April 16, 2020.
While leveraged and inverse ETFs can help traders exploit extremely short-term market movements, they definitely are unsuitable for the vast majority of investors. Typically, their holding periods should be very short.
Aggressive financial advisors may have unsuitably recommended VelocityShares Long LIBOR ETN (ULBR) in an effort to juice returns. Financial advisors, though, are required to recommend only those investments that are suitable for an investor in light of that investor’s age, net worth, income, investment experience, and investment objectives. So, if your financial advisor unsuitably recommended the ETN, your brokerage firm may be held responsible for any losses incurred.
Diversification is the key to reducing risk. Over-concentrated exposure to any sector or investment, but particularly volatile industries like oil and gas (and especially a product that seeks to leverage that risk 3x) is unsuitable for most investors.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokerage firms that fail to conduct adequate due diligence on investments they recommend, such as VelocityShares Long LIBOR ETN (ULBR), or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing in VelocityShares Long LIBOR ETN (ULBR) and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
