Florida Unsuitable Investments Lawyer
Stockbrokers and financial advisors have a professional duty to recommend suitable trades and suitable investment strategies to their clients. When brokers violate this legal obligation, investors may be exposed to far more risk than is appropriate given their financial situation and overall objectives. Investors who have been steered into risky, unsuitable investments may be eligible to recover compensation for their losses.
Gregory Tendrich is an experienced Florida unsuitable investment lawyer. If you lost money because your broker or brokerage firm recommended financial products or investment strategies that were not suitable for your risk tolerance, investment objective or investment profile, Mr. Tendrich can help. To schedule a free review of your case, please contact our law firm today.
Understanding the Suitability Rule (FINRA Rule 2111)
Under FINRA Rule 2111, registered brokers and financial advisors must have a reasonable basis to recommend or execute any transactions and to promote any investment strategies. This means that brokers and brokerage firms must always conduct adequate due diligence on the background of each individual investor. A personalized investment profile should be created for an investor in order to ensure that proposed trades and proposed investment strategies are actually appropriate for that unique needs. Among other things, brokers should obtain the following information when creating an investor profile:
- Age and investment time horizon;
- Overall financial status;
- Need for liquidity;
- Prior investment experience;
- Personal risk tolerance; and
- Short and Long-term investment objectives.
If an investor wants safe, conservative growth, then they should not be pushed into a speculative, risky investment strategy. If an investor is elderly or nearing retirement and will need reliable income in the future, they should be steered into safe financial products. Brokers and financial advisors that recommend unsuitable investments may be held legally responsible for any resulting damages sustained by their client.
What to Do If You Lost Money in Unsuitable Investments
With limited exceptions, most unsuitable investment claims are resolved through the FINRA arbitration process. Brokerage firms generally require investors to sign a customer agreement when the investor opens up a new trading account. These agreements almost universally contain mandatory arbitration provisions. Typically, this means that arbitration will be the exclusive legal remedy for the investor.
If you were a victim of unsuitable investment recommendations, you need to speak to an experienced FINRA arbitration lawyer. Your lawyer will be able to review the specific facts of your case, gather all relevant documents and evidence, and help you file an arbitration claim. Financial compensation may be available through the securities arbitration process, either by reaching a voluntary settlement with the brokerage firm or by obtaining a FINRA arbitration award.
Contact Our South Florida Unsuitable Investment Recommendations Lawyer Today
At the office of Gregory Tendrich, P.A., our legal team has extensive experience handling the full range of unsuitable investment claims. If you or your loved one sustained major losses due to unsuitable advice that you received from your investment advisor or brokerage firm, you may be eligible for financial compensation. For a free, no obligation review of your unsuitable investment claim, please contact our law firm today.