California Unsuitable Securities Lawyer

When your investment broker makes an investment recommendation, it is mandatory that he/she makes a reasonable attempt to ascertain your investment objectives prior to making the recommendation. If a recommendation is made that is unsuitable for your circumstances, your broker may be held liable for misconduct. A skilled and knowledgeable California investment fraud attorney from our firm can help you to be certain your legal rights regarding your brokerage investments are protected.

If you have received unfavorable advice from your investment broker, get in touch with an seasoned unsuitable investment advice lawyer in California at The Law Offices of Jonathan W. Evans & Associates. Complete our online form or dial (818) 760-9880.

How Do Investment Advisors Make Recommendations?

In order for your financial investment advisor to be able to make a recommendation for you, he must first determine if this recommendation is suitable for your financial circumstances, including your financial investment objectives as well as your financial and tax status. A record must be kept by the brokerage firm of any important financial information regarding you and your account. This record must be updated by your broker whenever your financial situation alters. If this record is not kept current, your broker may make recommendations that are unsuitable for your current financial circumstances. A broker must also be current on which stocks are presently in your portfolio in order to prevent overconcentration in one stock which can be a risky and therefore unsuitable investment for you.

How Does Broker Fiduciary Duty Protect Clients From Unsuitable Investments in California?

In California, brokers are considered fiduciaries, meaning they are legally obligated to act in the best interest of their clients. This fiduciary duty requires brokers to exercise utmost good faith, reasonable care, and loyalty concerning their customer's account. It demands that they put the interests of the customer first and disclose all relevant facts relating to investments.

One crucial aspect of this duty is ensuring that any investment, strategy, or trade recommended to a client is suitable for that client's financial situation and goals. This requirement is codified in FINRA Rule 2111. An unsuitable investment may amount to a breach of fiduciary duty.

Moreover, while brokers generally do not have a duty to monitor a customer's account continuously, they do have a responsibility to ensure that the recommendations made at the time of purchase were suitable based on the customer's financial situation and investment objectives at that time.

The broker's fiduciary duty serves as a protective measure against unsuitable investments, providing legal recourse for clients who believe their broker has failed to meet this standard. If your investment broker made a poor recommendation, do not hesitate to reach out to a qualified unsuitable investment advice attorney serving clients throughout California and the United States. If you were burned by your broker, we can help you recover your losses.

Unsuitable Securities Attorney Serving California

The professional unsuitable investment advice attorneys at The Law Offices of Jonathan W. Evans & Associates have 35 years of experience in securities fraud law, successfully helping clients to protect their rights. If you feel you might be a victim of investment fraud, you can rest assured that we will do everything we can to bring about a successful resolution to your securities fraud dispute. We are committed to devoting all of the necessary time and resources into launching a thorough investigation into all aspects of your case.

Frequently Asked Questions (FAQs) About Unsuitable Investment Advice

• What is unsuitable investment advice?
  Unsuitable investment advice occurs when a financial advisor or broker recommends investments that do not align with your financial goals, risk tolerance, or circumstances. This may include suggesting high-risk investments to conservative investors or over-concentrating a portfolio in one sector.
• How can I tell if my broker is not acting in my best interest?
  Signs that your broker may not be acting in your best interest include recommending investments without explaining why they are suitable for your situation, suggesting products that seem too risky, or making frequent, unexplainable changes to your investment strategy. You may also notice your portfolio is overly concentrated in one asset or sector.
• Can I take legal action against a broker for unsuitable advice?
  Yes, if you believe you’ve received unsuitable investment advice, you may have grounds for a legal claim. You can file a complaint with regulatory bodies like FINRA or the SEC, or pursue legal action for recovery of losses through arbitration or litigation.
• What are the consequences for brokers who provide unsuitable advice?
  Brokers who provide unsuitable investment advice can face disciplinary actions from regulatory bodies like FINRA or the SEC. This may include fines, suspension, or even loss of their license to operate. Additionally, they may be required to compensate you for any financial losses caused by their recommendations.
• How can I recover losses from unsuitable investments?
  You can recover losses by filing a formal complaint with regulatory bodies such as FINRA or the SEC. A securities lawyer can help you navigate the process and explore options for arbitration, settlement, or litigation to recover your financial losses.
• How long do I have to file a complaint for unsuitable investment advice?
  There are specific time limits (statutes of limitations) for filing complaints or legal claims related to unsuitable investment advice. In general, you may have a few years to take action, but it’s crucial to contact a securities lawyer promptly to ensure you don’t miss any deadlines.
• What is a fiduciary duty in relation to investment brokers?
  A fiduciary duty is a legal obligation that requires brokers to act in the best interests of their clients. This includes making recommendations that are suitable for the client’s financial situation, goals, and risk tolerance. If a broker breaches this duty, they can be held liable for any financial harm caused by their actions.
• Can I get compensation for emotional distress caused by unsuitable investment advice?
  Typically, workers' compensation laws or securities fraud claims do not cover emotional distress in investment disputes. However, if a broker's actions led to significant financial hardship, there may be opportunities for compensation through legal claims for your financial losses. A securities lawyer can help clarify your options.

Contact a California unsuitable investment advice lawyer from The Law Offices of Jonathan W. Evans & Associates to discuss your legal needs and options. Or call us tel:(818) 760-9880 now!