Your broker has the obligation to obtain enough information about you and your situation —such as your income, assets, investment objectives, risk tolerance, investment knowledge, and investment experience – to make recommendations that are in your best interest.
Information that your broker should consider before making an investment recommendation:
- Your current financial and life state
- Why you are investing and what you hope to get out of it
- Your future financial and situational needs
- Your tolerance for risk
After careful research, a broker or investment adviser should know whether recommending a particular investment to you would be in your best interests. Also, what is in your best interest for you now may not be appropriate for you in the future, so your adviser’s job is to continuously evaluate your needs as well as the state of the investment to ensure it remains in your best interests.
The investment advice you receive from your broker should be based on what is in your best interests. When brokers and investment advisers fail in their fiduciary duty to adequately research the investment, or they knowingly and intentionally recommend unsuitable investments, investors can file claims to recover their resulting losses. These types of claims are generally handled through FINRA arbitration, provided that the broker was registered and working for a registered brokerage firm.
Enlist the Help of an Investment Fraud Lawyer
The securities arbitration lawyers at Meyer Wilson may be able to help you. We are experienced at reviewing and investigating investor claims of unsuitability and inappropriate recommendations.
Call us or fill out our online form for your free case evaluation.