Principal Protected Notes, otherwise known as (“PPN’s”), are complex investments that can also be categorized as structured products. Banks and brokerage firms package these investments together and offer moderate returns with downside protection to investors based upon a link to the performance of a stock index, a basket of currencies, or certain commodities to name a few. Investment professionals around the country have widely promoted these so-called low risk investments, often earning themselves a 3% commission. Banks and brokerage firms are required to provide balanced disclosures to those individuals that qualify for participation in these structured products, so long as the recommendations are suitable for that investor. The banks and brokerage firms are also required to maintain an adequate structured product supervisory and training system. Many banks and brokerage firms have been subjected to significant fines and penalties for failing to meet these industry standards.
Principal Protected Notes were sold to many retail investors with little concern for the suitability of the recommendation or the credit risk of the underlying issuer. As a result, conservative investors and retirees have suffered significant damages in investments that were sold as principal protected, as safe as CD’s, as well as many other misrepresentations. Many argue that due to the complexity, and pricing inefficiencies, PPN’s and structured products are not suitable for any retail investor.
Legal Help for Victims of Securities Fraud
If you have suffered significant damages in a PPN that was sold to you as a safe or conservative investment, you may have a claim for damages. Gilman Law LLP is a leading securities fraud law firm and is here to help you recover damages for your principal protected notes. For a FREE evaluation of your case, please fill out our online form, or if you need to speak to an attorney right away CALL TOLL FREE (1-888-252-0048) today.
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