In any matter of investment fraud, it is important for your lawyer to know
first off whether your account falls in the category of discretionary
or non-discretionary. This is often a big part of the case and can go
a long way in determining if you may file an investment fraud claim.
Watch As Attorney Dave Meyer Explains Discretionary & Non-Discretionary Accounts
If an account is discretionary, it allows the brokerage firm to operate
without receiving permission from the investor before investing, trading,
or selling. A non-discretionary account requires the broker to speak with
the investor regarding any investment actions. Oftentimes, brokers don’t
know or don’t explain these accounts to their investors. Brokers
may also take on non-discretionary accounts and act as if they are discretionary
accounts and invest without permission.
In either case, it is the job of the broker to provide investors with the
correct investment recommendations. When this isn’t the case and
brokers act without permission on non-discretionary accounts, the investor
may be able to recover any losses that may have occurred.
If you had a non-discretionary account with a broker and you lost money
due to unpermitted trades, unsuitable investments, or breach of fiduciary
duty, you may be able to file a claim against the broker. Far too often,
these situations happen and it is the investor who is left wondering what
to do after suffering a financial loss. It is also too common for broker’s
to not fully explain the difference between discretionary and non-discretionary
and investors may not know any better.
Should you find yourself in this situation and in need of legal representation
to help recover your losses, Meyer Wilson is here to help. Our securities
free case evaluations to discuss your situation and determine if you can file a claim. Reach
out to us today and learn how we can help you.