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What Should You Do If You Are Affected By Poor Puerto Rico Bond Investments?

Posted: Nov 12, 2013 | Posted in:

If you invested in UBS Puerto Rico funds and are one of the investors facing double-digit losses in your investment this year, you may be wondering how this disaster happened and what your options are now.  Many investors who choose to purchase funds that invest in municipal bonds do so because they believe such investments are relatively risk free.  Now these investors face significant financial loss and the potential for more damages.  If you are one of the investors who sustained great financial loss as a result of your investment in Puerto Rico bonds, you need to understand your options for recovering your losses.

What to Do If You Lost Money in UBS Puerto Rico Funds

If you lost money in UBS Puerto Rico funds, you may be able to file a claim to recover your losses.  Brokers, financial advisors and fund managers can be held liable for misrepresentation and failure to advise investors of the risks involved in an investment.  You can take legal action in situations where there was an overconcentration of your investment money in Puerto Rican debt or where your mutual fund manager or advisor made unsuitable recommendations without warning you of the risk.

Here are a number of potential entities that you can make a claim against to attempt to recover money lost in UBS Puerto Rico bond funds.  First, you can make a claim against the Puerto Rico bond fund itself.  UBS funds, including the Tax-Free Puerto Rico Fund, Inc., the Tax-Free Puerto Rico Target Maturity Fund, Inc. and various Puerto Rico Fixed Income funds, were heavily invested in Puerto Rican debt.   Many other fund companies, including OppenheimerFunds, also sold mutual funds to investors, resulting in significant exposure to Puerto Rican debt.

However, making a claim against the Puerto Rico bond fund is not your only option. You can also make a claim against the financial advisors who misled you about the risk or encouraged you to put money in an investment that was not suitable to your risk tolerance.  For example, if your financial advisors suggested Puerto Rico bond funds, or your investments were recommended by the UBS Puerto Rico brokerage firm, and the advisor or brokerage firm mislead you or misrepresented information, they may be held liable for their actions.

Financial professionals have a fiduciary obligation to share important facts with their client about the investment.  They must do their due diligence to make sure the investment is safe and appropriate for the client.  For retirees and older individuals, for example, investing in risky UBS Puerto Rico funds may not have been wise because of the potential for loss of necessary retirement income.

If an investment professional falls short of his fiduciary duty, it is possible to recover investment losses through court litigation or Financial Industry Regulatory Authority (FINRA) arbitration.

If you have suffered UBS Puerto Rico bond funds losses, your best option is to contact a lawyer immediately to learn about how you can pursue a claim to recover your losses.