Not necessarily. If a broker or financial advisor has recommended suitable investments and otherwise fulfilled his or her obligations, there may not be legal liability just because it performed poorly. Unsuitability becomes can be a problem when your broker fails to take the time to research and be certain any given investment is a reasonable recommendation.
If your broker does make an investment recommendation that is unsuitable, then you may have an investment misconduct claim. There are many types of misconduct claims, including:
- Breach of fiduciary
Determining what type of claim you have can be tricky, depending on the circumstances, but it is very likely that you will need to pursue the claim against the broker or brokerage firm through mandatory FINRA arbitration.
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