All investments involve some risk, but clients may have legal remedies when investment advisors fail to uphold professional standards, causing financial loss and harm. These professionals are regulated by state and federal law and can be liable to their clients for wrongdoing, including unauthorized trading, unsuitable investments, misrepresentations, ignorance of investment risks and failure to disclose risks, all of which can lead to investment and financial losses. A brokerage firm may also be liable for failing to supervise its brokers.
The Financial Industry Regulatory Authority (FINRA) has rules of conduct for every member or member firm, requiring that brokerage firms establish and maintain a reasonable system to supervise the activities of registered representatives. Examples of violations of rules of conduct include failure to properly maintain accurate records of brokerage accounts, failure to review daily trading activity and failure to investigate consumer complaints.
There are a number of securities lawsuits potentially available to investors who suffer financial loss as a result of broker/advisor misconduct or investment fraud. We advocate for clients in all aspects of investment loss arbitration and litigation, including:
- Comprehensive analysis of investment selection, management, suitability and loss issues
- Strategic negotiation and representation in mediation/arbitration
- Representation in actions for fraud, failure to disclose/diversify, misrepresentation, self-dealing, breach of fiduciary duty and other issues