While there are many reputable stockbrokers with no shortage of excellent advice to dole out, there are just as many financial advisors who may misrepresent their past successes and knowledge in order to gain you as a client.
These “financial advisors” will work hard to establish a business relationship with you. However, once they’ve gained your trust, and, ultimately, control over your finances, they may cut and run, leaving you without the assets and savings you’ve worked for years to earn.
This is, unfortunately, an all-too-common scenario. When looking to enter into the stock market and make financial trades and gains, it’s always a good plan to seek out the advice of someone with knowledge and acumen of the industry, as many potential investors do not have a sophisticated understanding of the stock market.
What is considered unsuitable investment advice?
As an investor, your stockbroker is required to ensure that you understand the exact risks you will be taking, as well as how the investment fits in with your portfolio and long-term financial goals overall. A brokerage firm, as well as financial advisors must take into consideration, all of the above factors when dispensing financial advice.
One of the core regulations of FINRA states that a stockbroker must have a reasonable basis for recommending that a financial transaction or investment strategy is sound and suitable, based on the best interests of the investor. This may be based on the age of the investor, their family situation, other investments, tax status, investment experience or objectives, liquidity needs, or tolerance for risk.
It is also important that investment advice is considered suitable when viewed as a separate transaction, as well as when it is considered with your entire portfolio, and this stipulation is known as Quantitative Suitability.
A proper stockbroker or financial advisor will ask all of the necessary questions when getting involved with a new client: What are your financial goals? Do you have a family? Are you saving for retirement? Are you interested in investing in new industries? Do you need any kind of financial insurance? Are you aware of all of the risks of entering the stock market?
If your stockbroker or financial advisor misled you into investing your assets in a situation without taking the necessary information into consideration—or makes a recommendation that goes against your financial goals—you deserve only the best representation to recover your assets.
Experienced Nevada Attorneys for Unsuitable Investment Loss and Recovery
At De Castroverde Law, we have a group of skilled attorneys who specialize in investment loss and recovery. We understand how devastating it can be to fall prey to unsuitable investment advice, only to lose crucial savings and hard-earned finances with the wrong advice. We are ready to take your case to court under the FINRA regulations to hold your stockbroker or financial advisor accountable, to recover your assets, and to make sure that these brokers do not take advantage of another investor like you.
Contact De Castroverde Law today if you believe you have been misled or given unsuitable financial advice that has impacted your life. We are on your side and ready to fight for you.