There is a level of trust between an investor-client and the broker. In addition, broker and financial advisors have the duty to operate in good faith, which includes executing orders made by the client. When he or she fails to do so, it could be considered stockbroker misconduct. If your broker did not buy or sell a specific security after you provided instructions to do so, you may be able to recover your financial loss. This type of claim is typically referred to as “failure to execute.”
A failure to execute claim could include any of the following:
- A broker refused to buy or sell a stock
- A stop loss order was not executed
- An investor had reason to believe an order was made, even if the broker advised against it
Investment Fraud Lawyer for Advisor Misconduct Claims
If you requested an order be placed on your behalf and your broker failed to timely execute that order, you may be eligible to recover any losses associated with the failure to execute. Brokers and advisors have a duty to operate in good faith. While a component of that duty may be to warn clients against particular purchases or sells when there is reason to consider them inadvisable, if the investor had reason to believe the order was going to be executed in spite of such recommendations, the broker and the broker's firm may be liable for damages.
Investment advisors are required by law to keep an accurate record of order memoranda. If you gave an order to your advisor, then your advisor should have record of this. Keeping accurate records is part of advisor accountability. They should also keep records of powers granted them by the client, written and electronic transmissions regarding agreements, statements and receipts.
Financial advisors may receive orders that they would advise against. Even in these situations, they must clearly communicate their intended actions with their client. These cases can be complex, but we can investigate your case to see if failure to execute is what caused your losses.
Meyer Wilson Can Pursue Your Investor Claim
Broker misconduct cases, such as these ones, are almost always handled in securities arbitration before the Financial Industry Regulatory Authority. During the arbitration hearing, you will be able to present evidence that your broker failed to execute your order and you lost money as a result. The arbitration panel will then decide if you will be able to recover damages.
With over 50 years of combined legal experience, and having successfully represented over 800 individual and institutional investors, the securities arbitration lawyers at Meyer Wilson have the expertise, experience, and resources necessary to review, investigate and aggressively pursue your investor claim for failure to execute. We have won hundreds of millions of dollars in losses for clients nationwide. For assistance with your stockbroker misconduct claim, call us today!