When is an investment unsuitable?

An investment that is suitable for someone else might not be suitable for you, and it’s important to know the difference. Determining if an investment is suitable for your specific circumstances requires careful consideration of your overall financial goals and means. There are many reasons an investment might be unsuitable for you, including the following:

  • You can’t afford the potential losses associated with the investment.
  • You don’t fully understand the risks associated with the investment.
  • The investment is not in line with your overall investment goals.

You should always discuss any potential risks with your broker or financial adviser, and you should keep your overall investment goals in mind when considering the pros and cons of a new investment opportunity.

Your broker or financial adviser has a duty to get to know you and recommend investments that will be suitable for you based on a number of factors, including:

  • Your risk tolerance
  • Your investment experience
  • Your attitude toward risk
  • Your investment goals
  • Your unique circumstances

If your broker or adviser fails to take these kinds of factors into account when recommending investments, then you may be able to recover your losses through legal action. An investment misconduct lawyer with Meyer Wilson would be happy to meet with you to provide further guidance and answer any questions you might have. Just give us a call today, or fill out our confidential online contact form for more information.