Many people regard their investment advisor or broker as an expert in the area of investments and money management. As a result many investors rely on the advice and recommendations of their brokers. Your broker or financial adviser has a duty to get to know you and recommend investments that will be suitable for you based on a number of factors, including:
- Risk tolerance
- Investment experience
- Investment goals
- Investment Horizon
- And other circumstances unique to you
If your broker fails to take these kinds of factors into account when recommending investments, then they may have breached their duty to you. In that case, you may be able to recover some of your losses.
Because of the trust investors place on Investment Advisors and Stockbrokers, they may also owe you a heightened duty known as a “fiduciary duty.” Part of a broker’s fiduciary duty to an investor is to provide complete, factual information on any recommended purchase of an investment. If the information provided is not accurate or complete, the broker may be liable for some of your losses. A broker’s fiduciary duty to an investor may also require that the broker:
- Place your interests ahead of theirs
- Monitor the changing markets for impact on the your portfolio
- Act responsibly in serving the your interests
- Advise you on the potential benefits and risks involved with their recommendations
- Keep you apprised of all transactions that affect the your portfolio
Investment and securities arbitration and lawsuits require a deep understanding of the securities industry, arbitration rules and procedures, as well as a tremendous attention to detail. If you have suffered financial losses as a result of a broker’s misrepresentation or omission regarding a security, call us. We will fight for you to help recover your losses.