If you hire a financial advisor to supervise your accounts and investments, you have the right to expect the advisor to make decisions according to your best interests. Unfortunately, some financial advisors fail to fulfill this expectation, resulting in issues such as misconduct, negligence, fraud or breaches of fiduciary duty. These mistakes can lead to recommending unsuitable investments.
Contact the law firm of Meyer Wilson if you suffered an economic injury due to an unsuitable investment recommendation by your financial advisor in Michigan. The financial advisor may owe you financial compensation for your losses.
An unsuitability claim against a financial advisor often does not take the form of a lawsuit against the individual advisor responsible for your economic loss. Instead, a larger corporation may be vicariously liable for the advisor’s misconduct or directly liable for failing to supervise their agent. Going up against a powerful corporation can be difficult without assistance from an attorney. The corporation may have an aggressive legal team to dispute liability. A lawyer can help you battle common tactics from legal teams and defend your side of the case. The attorneys at Meyer Wilson can also take a corporation to court if that is necessary for fair compensation.
The SEC's Regulation Best Interest (Reg BI) under the Securities Exchange Act of 1934 establishes a "best interest" standard of conduct for broker-dealers and associated persons when they make a recommendation to a retail customer of any securities transaction or investment strategy. These obligations are critical to ensuring investor protection and promoting fair dealings with customers and ethical sales practices. Â
Reb BI requires that a broker-dealer exercise reasonable diligence, care, and skill when making a recommendation to a customer. The broker-dealer must understand potential risks, rewards, and costs associated with the recommendation. The broker-dealer must then consider these factors in light of the customer’s investment profile and make a recommendation in the customer’s best interest . The standard of conduct draws from key fiduciary principles and cannot be satisfied through disclosure alone.
The lawyers at Meyer Wilson can help you with an unsuitability claim against a financial advisor in Michigan. Each case begins with a free consultation and initial case review. During your meeting with an attorney, you will have an opportunity to ask questions and receive tailored, unbiased answers. Speak to an experienced attorney today.Â
