Breach of fiduciary duty is one of the most common investor claims against stockbrokers and brokerage firms. Regarding their brokers as experts in the area of investments and money management, many investors rely entirely on the advice and recommendations of their brokers. Recognizing the profound level of trust this places in the broker, the courts have determined that brokers hold particular legal duties toward their clients.
Brokers and brokerage firms always have a duty to deal in good faith with their investors as long as they remain clients. Many jurisdictions also hold that brokers owe their securities customers a heightened duty known as a "fiduciary duty."
- The duty to place the client's interests ahead of the broker's or the brokerage firm's interests
- The duty to monitor the changing markets for impact on the client's interests
- The duty to act responsibly and with due care in serving the client's interests
- The duty to advise the client on the potential benefits and risks involved with broker recommendations/actions, and
- The duty to keep the client abreast of all transactions that affect the client's interests.
According to 29 USC § 1109:
"Any person who is a fiduciary... shall be personally liable to make good to such plan any losses to the plan resulting from each such breach, and to restore to such plan any profits of such fiduciary which have been made through use of assets of the plan by the fiduciary, and shall be subject to such other equitable or remedial relief as the court may deem appropriate, including removal of such fiduciary."
A breach of fiduciary attorney from Meyer Wilson can step in and fight to recover your losses if you were harmed by a breach of fiduciary duty. When financial advisors are found guilty of a breach of fiduciary duty they typically have to restore investor losses, but they may also face imprisonment and become barred.
Do You Have a Breach of Fiduciary Duty Claim?
If these duties are not met, both brokers and their firms can be held responsible for abusing the investor's trust and confidence and breaching their fiduciary duties. To ensure your claim for breach of fiduciary duty is handled effectively, you need the assistance of a law firm nationally recognized for its professional excellence. No matter how large or well-established the firm, Meyer Wilson securities fraud attorneys are prepared with the skill and experience to represent our clients aggressively and effectively. Our record speaks for itself: we have recovered over $350 million for our clients.
We have won hundreds of millions of dollars in losses for clients nationwide, including in cities such as Los Angeles, San Francisco, Columbus, Cincinnati, New York, Seattle, Boston and Tampa.
For help with your stockbroker misconduct claim, complete our online form to request a free evaluation.