It is unethical and against the law for a financial advisor in Ohio to recommend an investment to a client that is not in the investor’s best interests to pursue. While even a prudent advisor may recommend a bad investment, if the financial advisor negligently or intentionally made an unsuitable recommendation, he or she could be financially responsible for the client’s subsequent losses.
At Meyer Wilson, our investment fraud attorneys have years of experience representing clients in civil investor claims. Please contact us right away if you believe unsuitability caused your recent economic injury in Ohio.
Unsuitability claims against financial advisors and other types of investment fraud lawsuits involve extremely complex laws. State and federal regulatory organizations have rules in place for how financial advisors and stockbrokers must treat their clients. Navigating the laws related to your case while also going up against a large or powerful brokerage firm could prove difficult without legal representation. Hiring a lawyer from Meyer Wilson, on the other hand, could give you peace of mind while a licensed professional handles your case.
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 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.
Reb BI requires that a broker-dealer exercise reasonable diligence, care, and skill when making a recommendation to a retail 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.
If a brokerage firm or broker fails to recommend an investment in a customer’s best interest and the customer loses money as a result, the firm can be held responsible.
Schedule a free consultation at Meyer Wilson to discover what your unsuitability claim could be worth in Ohio. We can evaluate your case and listen to the story of how you believe a financial advisor took advantage of you or negligently made an unsuitable investment recommendation. Then, we can calculate your damages and help you demand a fair amount from the defendant. Whether you have a case based on negligence or fraud, we can help.