Renee Fourcade UBS Financial Services

If you’re looking for financial advisors in Los Angeles, you may come across the name of Renee Fourcade UBS. Although she has been in the industry for quite some time, it seems she uses her knowledge and experience in the wrong manner.

Her firm has many selfish and shady provisions which put her clients in unfavorable situations, particularly in the long run. Before you consider working with this investment advisor, it would be best to go through these provisions so you can determine if she is truly worth your time or not.

About Renee Fourcade UBS 

Renee Fourcade UBS is a financial advisor based in Los Angeles, California. Her office is located at 1999 Avenue of the Stars 36th Floor, Los Angeles, CA 90067, US and her contact number is 310-772-7058. 

She specializes in comprehensive retirement services for public and private corporations and has CIMA and CRPS certifications. Renee also claims to help her clients in mergers and acquisitions as well as retirement plan issues related to those transactions. 

At UBS Financial Services, Renee is the Senior VIce President – Investments. Additional services you can avail from Renee include multigenerational planning, education financing, and retirement planning. 

Unless you read her disclosures in detail, you’d think Renee Fourcade UBS is a trustworthy and genuine financial advisor. However, her disclosures indicate that she doesn’t put her clients’ interests ahead of her own. 

Red Flags in the Terms and Conditions of Renee Fourcade UBS

Before you start working with any financial advisor, you should look them up on FINRA BrokerCheck. FINRA BrokerCheck is a detailed database where you can find out all the necessary information about your financial advisor. 

This includes information about their educational qualifications, the exams they have passed, their professional history, and the disputes they have had. Renee’s FINRA BrokerCheck profile shows that she has had two legal disputes with her clients. 

Her first dispute occurred in 1998 where a client alleged that in June 1997, she failed to follow the client’s instructions and did not exercise the client’s option to buy and then sell 2,000 shares of Medical Alliance Company stock prior to them resigning from the same. 

The claimant requested for $23,000 in damages but Renee denied the matter. 

Renee’s second dispute is actually a regulatory action. In 2009, Renee had violated the NASD Rule 2110 where she accepted portfolio trading commissions from her member firm which shared portfolio trading commissions with retail sales personnel. This violates the NASD Rule 2830(K)’s prohibition against sharing portfolio trading commissions with retail sales personnel. 

The resolution of the regulatory action was Acceptance, Waiver & Consent with censure sanctions. Renee had to pay $15,000 in civil and administrative penalty. 

Facing a regulatory action is no small matter. It suggests that Renee Fourcade UBS is a careless and irresponsible financial advisor. The current provisions present in her disclosures suggest the same thing. I’ve highlighted them below: 

Charging Performance-based Fees

A huge red flag in the disclosures of Renee Fourcade UBS is that she charges performance-based fees. This means she has monetary incentive for using high-risk strategies. 

Charging performance-based fees is a highly notorious practice in the finance industry because it often leads to poor returns for the client. When advisors follow this fee structure, they get paid for outperforming a certain index or benchmark. 

In doing so, advisors tend to double down on the risk, regardless of its suitability for the client. As the name suggests, high-risk strategies have a high failure rate and in most cases, they lead to subpar returns or worse, substantial losses. 

They are particularly dangerous in down markets. 

If you’re planning for a retirement or are looking for long-term security, you should be cautious of performance-based fee structure. It is detrimental to long-term growth and is unsuitable for low-risk portfolios. 

On top of that, you can’t hold your advisor responsible for the losses you suffer because of their high-risk strategies. That’s because they make you sign multiple waivers when you sign on as a client. 

Selling Proprietary Investment Products

Renee is a part of UBS Financial Services, a large corporation with various proprietary investment products. In theory, there’s nothing wrong in selling proprietary investments but in reality, it leads to many conflicts of interest you can’t ignore. 

First of all, when you work with a financial advisor, you expect to get recommendations that suit your financial requirements and goals. But when your advisor has incentive for ignoring your financial requirements, things get tricky. 

Advisors earn hefty commissions from the proprietary investments they sell. Also, UBS advisors have a bad reputation when it comes to promoting such investment products. 

Just recently, multiple UBS advisors faced lawsuits from their clients because they recommended the YES Strategy Program without giving any regard to its suitability. 

The promise of earning lucrative commissions from the sale of proprietary products can cloud the judgment of your advisor. It incentivizes them to ignore your financial goals and plans. 

In most cases, clients only get mediocre or subpar results when they could’ve gotten much better returns. Then you have some special cases where clients lose a large share of their invested capital because of unsuitable advice. 

Keep in mind that earning from commissions is among the biggest reasons why advisors give unsuitable advice to their clients. 

Conclusion

Stay miles away from Renee Fourcade UBS. Her provisions and terms are unfavorable for most investors, particularly those looking for long-term growth. You’d end up stuck in a terrible agreement where you can’t do anything about the subpar results you get. 

It would be better to look elsewhere and find a more competent and caring advisor. 

2.6Expert Score
Too many flaws

Renee Fourcade UBS is a horrible financial advisor who doesn’t care about her clients. Her terms and conditions encourage her for ignoring her clients’ requirements. This is a terrible deal and you should avoid it for the sake of your financial security.

Trust
3
Service
3
Experience
2.5
Concern for Clients
2
Pros
  • None
Cons
  • Selfish and greedy
  • Charges performance-based fees
  • Sells proprietary investments
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