Explaining Investment Risks
| November 18, 2019
My broker didn’t explain the potential risks involved in the investment he recommended. I ultimately lost money. Can I hold the brokerage firm responsible?
The broker and brokerage firm have the duty to deal in good faith with you, as the client. Many courts have determined that they also owe a higher level of duty to their clients, known as fiduciary duty, due to the amount of trust that is created. When a broker does something to violate this trust, it is often considered a breach of fiduciary duty and the brokerage firm may be held liable for your financial losses.
Breach of fiduciary duty claims are generally handled in arbitration before the Financial Industry Regulatory Authority (FINRA). The broker misconduct lawyers at Meyer Wilson have experience representing clients in arbitration, litigation, mediation and class action lawsuits.
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