Unsuitable Investment Claims: Protect Your Financial Interests
In today’s marketplace, it is important for investors to make educated and informed investment decisions. But what happens when your financial adviser’s negligence leads to bad investment advice, resulting in significant financial losses? The consequences can be devastating, and the violation of a fiduciary duty can be a breach of trust and the basis for legal action.
Attorney Ethan Brecher has dedicated his legal practice in New York City to high-stakes and high-profile commercial and securities litigation and employment law. With a deep understanding of the complexities of securities litigation and an intellect that fosters sophisticated legal strategies, he is a tenacious fighter for his clients. At Law Office of Ethan A. Brecher, LLC, he is well-equipped to handle unsuitable investment claims and protect your financial interests.
Understanding Suitable Investments
Financial advisers have a fiduciary duty to their clients, which means they must act in their clients’ best interests when providing investment advice. This duty includes recommending suitable investments that align with the client’s:
- Risk tolerance
- Investment goals
- Financial situation
Financial advisers must also disclose any potential conflicts of interest and provide transparent information about the investments they recommend.
What Makes An Investment Unsuitable Under Securities Laws?
An investment is considered unsuitable if it does not align with the client’s investment objectives, risk tolerance or financial situation. This can include investments that are too risky, too conservative or not diversified enough. Additionally, investments that are not properly disclosed or are misrepresented can also be considered unsuitable. Examples of unsuitable investments include recommending high-risk investments to a conservative investor or failing to diversify a portfolio.
What Is The Know Your Investor Rule?
The Know Your Investor Rule, also known as FINRA Rule 2111, requires financial advisers to have a reasonable basis for believing that a recommended investment is suitable for the client. This rule is designed to ensure that advisers understand their clients’ investment needs and provide personalized advice. Violations of this rule can lead to an unsuitable investment claim.
How Can You Prove That A Financial Adviser Recommended Unsuitable Investments?
To prove that your financial adviser recommended unsuitable investments, you must demonstrate that the adviser failed to meet their fiduciary duty. This can involve gathering evidence of the adviser’s recommendations, the client’s investment objectives and risk tolerance and any relevant documentation or communications. A skilled and innovative securities attorney can help you build a strong case and navigate the complex legal process.
Protecting Your Interests When A Fiduciary Duty Is Breached
When a financial adviser breaches their fiduciary duty, it’s essential to have a skilled and strategic attorney who can protect your interests. The firm has a proven track record of handling and resolving breach of fiduciary duty cases in securities litigation. Attorney Brecher is a fierce advocate for his clients. Armed with an intricate understanding of the idiosyncrasies of securities laws, he employs innovative legal strategies to navigate complex disputes. With his sophisticated negotiation and litigation skills, he provides cost-effective legal strategies designed to protect his clients’ financial interests.
Schedule A Consultation With A New York Unsuitable Claims Attorney
If you suspect that your financial adviser has recommended unsuitable investments, attorney Brecher is available by appointment for initial consultations. To schedule an appointment, you can call 212-235-1477 or send a message through the firm’s website.