BAD FINANCIAL ADVICE? RECOVERING YOUR INVESTMENT LOSSES
Losing trust in your financial advisor can be stressful and financial losses can wreak havoc on your life, especially if you are in your retirement years. If you want to sue your financial advisor it likely will not be in court. Instead, you will be compelled to file your case with FINRA (Financial Industry Regulatory Authority), the governing body for these types of cases.
FINRA is a self-regulatory, non-profit agency designed to protect U.S. investors by enforcing fair and honest securities industry operations. When a brokerage firm or financial advisor violates FINRA rules and regulations, investors may have a claim to recover their losses through FINRA arbitration.
The most common broker and financial advisor FINRA violations include:
- Breach of Fiduciary Duty: Investment advisor places their own financial interests over those of the investor;
- Failure to Diversify: Investment advice results in inadequately diversified portfolio, increasing risk;
- Failure to Supervise: Investment firm fails to adequately supervise the activities of its financial advisors, brokers or representatives;
- Misrepresentation: Broker or financial advisor fails to present all pertinent investment information and related costs and risks;
- Unsuitability: Investment firm fails to consider investor’s age, investment experience, financial status, risk tolerance or other relevant criteria when recommending investments;
- Unauthorized Trading: Investment firm trades on investor’s account without required consent; and
- Account Churning: Generating excessive fees or commissions by recommending unnecessary or excessive trading.
If you’ve lost your hard-earned savings due to the negligence or faulty advice of a broker or financial advisor, our firm can help you recover your losses through FINRA arbitration. Contact The Wright Law Office today to discuss your options in a free, confidential consultation.