Structured Product or Structured Note Investments? Recover Your Investment Losses

Bixby Law PLLC is currently investigating claims involving brokers, financial advisors and brokerage firms that recommended clients invest in Structured Products such as Structured Notes, Autocallable Structured Notes, Reverse Convertibles, Principal Protected Notes. Many investors may not understand that may be a substantial risk of losing all or a substantial portion of the principal invested in many Structured Products and Structured Notes. Investors who were sold Structured Products or Structured Notes and have suffered losses or other damages may have a right to file a claim through FINRA (Financial Industry Regulatory Authority) Arbitration to recover their losses.

Structured products are complex securities and investment products which are typically derived from one or multiple securities or even a market index, commodities, or even currencies. The terms and features of complex Structured Products vary wildly and may be difficult for retail investors to understand. Some structured products and notes come with principal protection, and others offer no protection or very limited protection. Structured products normally come with two components – the note and a derivative. The note feature of the product typically pays interest periodically, and the derivative component which sets payment at maturity. As such structured products are often compared to options contracts or options trading.

The Regulatory Organization FINRA which oversees brokers and brokerage firms has long warned of the risks of offering such products, particularly to retail investors. While structured notes and other structured products may be marketed as alternatives to debt and fixed income investments, FINRA has warned that “the potential loss of the principal for many such products may make them unsuitable for investors seeking alternatives to debt securities.” FINRA has cautioned financial advisors against misrepresenting such investments as “conservative” or “predictable” and instead likened structured products as “more akin to an option contract.”

FINRA imposes strict obligations on brokerage firms who recommend such products, including the obligations to:

1. Due Diligence & Training: Conduct adequate due diligence of the product recommended and training of their financial advisors
2. Suitability/Best Interest: Determine that the recommendation is suitable or in the best interest of the customer;
3. Fair & Balanced Presentation: Any sales presentation of the risks and the
4. Supervision: Diligent supervision of financial advisors who recommend structured products.

Brokerage firms and advisors that violate any of these strict obligations may be subject to liability for their conduct.

There are a wide variety of banks and financial institutions that issue these types of products, such as:

• Bank of Montreal (BMO)
  • Including BMO Autocallable, BMO Notes, Barrier, Accelerator, Callable
• Barclays Bank PLC
  • Including Barclays Bank PLC Note Convertible Security Linked, Barclays MTN (Medium Term Note) Security Linked Convertible
• BNP Paribas
  • Including BNP Paribas Note, BNP Paribas Note Convertible Security Linked (CONV SCRTY LNKD), BNP Paribas Note Monthly Variable (Mthly Var)
• Citigroup Global Markets
  • Including the Citigroup Medium Term Note (MTN) Security Linked products
• Credit Suisse AG
  • Including the Credit Suisse AG London Branch Note Security Linked products
• GS Finance Corporation
  • Including the GS Finance Corp. Note Security Linked products
• Morgan Stanley Finance LLC
  • Including the Morgan Stanley Fin LLC Sr Medium Term Note (MTN) Security Linked and Morgan Stanley Finance LLC Note M/W Callable Security Linked (Clbl Scrty Lnkd)
• Societe Generale S.A.
  • Including the Societe Generale Note, Societe Generale Note Convertible Security Linked, Societe Generale Note M/W Callable Security Linked, Societe Generale Note Var, Societe Generale Unsecured, Societe Generale Medium Term Note (MTN)

If you have suffered losses investing in Structured Products or Structured Notes, you may have a legal right to recover your losses. Bixby Law PLLC represents investors on a contingency fee basis and does not charge upfront costs or fees. You will only be charged attorney’s fees by Bixby Law PLLC if a recovery is made for you. Contact us today for a free and confidential evaluation, toll free at (833) 547-4994 or email attorney Michael Bixby directly at Michael@BixbyLawFirm.com.