Stockbrokers & Brokerage Firms: Breach of Fiduciary Duty
Every broker or financial advisor has certain fiduciary duties he or she must uphold for their investors, such as putting their financial needs first. When this duty is breached, investors can file claims for compensation. According to securities industry regulations, financial advisors and brokers are prevented from participating in deceptive or manipulative practices, as this can be detrimental to the investors.
Has your broker used fraud, misconduct, or some other type of manipulation for their own benefit without considering your best interests? This could constitute breach of fiduciary duty and it can take many different forms.
Stockbroker Misconduct: How They Try to Cover It Up
When brokers need to cover up their misconduct, they can use deceitful practices such as misrepresentation and omissions. Your financial advisor is charged to fulfill their duty to you as an investor. Part of this includes being open and honest at all times. It is considered misconduct for an advisor to purposefully omit or conceal the truth from their clients as well as their supervising brokerage firm.
Getting Your Money Back
Stockbroker arbitration and stockbroker mediation are the best chances you have to get your money back. FINRA arbitration and mediation are available to investors who lost money through the fraud or misconduct of a registered broker working for a registered brokerage firm or financial institution.
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