If Your Broker, Brokerage Firm, Financial Advisor or Investment Consultant Recommended An Unsuitable Investment To You or Invested Your Money In An Unsuitable Asset Class, You May Have An Unsuitability Claim Against Your Broker.
-Report Unsuitable Investment Recommendations-
What Is Unsuitability Or An Unsuitable Investment?
Unsuitability or an unsuitable investment can occur when an investment made by a broker is inconsistent with the investor’s objectives and investing profile (e.g., age, financial or tax status, goals, income, and net worth of the customer). An investment may be unsuitable if a customer does not have the financial ability to incur the risk associated with a particular investment, or if the investment was not in line with the investor’s financial needs; or if the investor did not know or understand the investment risks.
In other words, an unsuitable investment is one not particularly well suited for a particular investor. An example of an unsuitable investment might be a recommendation to make a significant investment in a highly speculative security to an investor with a fixed income or the need for steady monthly income or investments in highly risky assets for investor who is about to retire.
Did Your Broker Make Unsuitable Investment Recommendations?
In recommending to an investor customer the purchase, sale or exchange of any security, a broker or brokerage firm should have reasonable grounds for believing that the recommendation is suitable for the investor customer upon the basis of the facts, if any, disclosed by such customer as to his other security holdings and as to his financial situation and needs.
Prior to the execution of any investment or brokerage transaction recommended to a non-institutional investor customer, a broker should make reasonable efforts to obtain information concerning the investor’s suitability, including:
(1) the investor’s financial status;
(2) the investor’s tax status;
(3) the investor’s investment objectives; and
(4) such other information used or considered to be reasonable by such broker or registered representative in making recommendations to the investor.
A securities broker must make investment recommendations and investment decisions that are consistent with the customer’s risk tolerance, needs and objectives. A broker has a duty to know his investor client and only recommend investments and trading strategies that are suitable for that client.
It is the duty of a broker to make recommendations that are appropriate and suitable given his investor client’s circumstances. If a broker breaches those duties and makes unsuitable recommendations for a client, the broker may be liable to that investor client for an unsuitability claim.
-Recover Losses Due To Unsuitable Investments or Unsuitability-
If Your Broker, Brokerage Firm, Financial Advisor or Investment Consultant Made An Unsuitable Investment Recommendation, Contact An Unsuitablility or Unsuitable Investment Lawyer.
-Contact An Unsuitablity or Unsuitable Investment Attorney-
If You Were The Victim Of An Unsuitable Investment Recommendation, Share Your Unsuitability Experiences With Other Investors Below.
