A professional financial advisor is expected to offer appropriate recommendations, honest advice, as well as transparent information that will benefit the investor. The financial advisor will provide the investor with a suitable investment recommendation and also develop a diversified portfolio for them.
An investor tends to trust the advisor to make informed judgments or recommendations. This is because the financial advisor is well-experienced in the field. Therefore, the financial advisor is expected to be trustworthy and professional enough to help the investor make profits with the trading.
Nonetheless, not every stockbroker or brokerage firm can be trusted out there. Some of these financial experts abuse their positions and the trust of the investor. As a result, the lousy brokerage firms will push their brokers to sell bad investments to naive clients. These brokers will liaise with the financial advisers to make profits from the losses of the investors.
Should I Hire a Broker Misconduct Lawyer?
With the plenty of stockbroker fraud cases being reported every year, it is only necessary to seek the help of an experienced attorney to handle your situation. If you try to fight the shady brokerage firm by yourself, they may not pay a single dime. You would waste your time following them up but only walk back home with nothing. That is why you need an attorney to offer validity and weight to your claim.
You might not understand the brokerage rules or how to go about it. However, the broker misconduct attorney will have the necessary knowledge and experience to face the brokerage firm and restore your losses.
The lawyer will ensure that your case is well handled and that justice is served to the brokers accordingly. Plus, the stockbroker misconduct attorney will handle the paperwork, deadlines, as well as the use of any legal resources to fight the unscrupulous stockbroker.
The Broker’s Duty of Fair Dealing
Any stockbroker is responsible for the correct recommendation of investments to the investor. Also, they must give facts to the client and not mislead them to making losses. The promise that brokers make including the disclosure of all facts that relate to investment, ensuring investments are suitable, charging fair market rates, and following clients’ instructions are what combine into the duty of fair dealing.
Generally, a duty of fair dealing is that essential duty that brokers owe. The investors trust brokers to help them move in the right direction with every investment they make. They also believe in their advice when trading. Some of the typical duties of a broker when working with a client include:
- Disclosing conflicts of interest
- Making appropriate investment recommendations
- Monitoring the investment performance of the client
- Researching financial markets
- Reporting every investment-related information to the client
- Making a fair and well-balanced risk disclosure for the investor
- Managing the investment portfolio of the client
If the broker doesn’t stick to these duties, they will be held responsible in case of a loss incurred by the client. The FINRA, SEC, state and federal securities laws impose strict rules concerning the conduct of the financial advisor. Whenever the broker doesn’t honor the requirements and expectations, we will step in to handle the case for you and help you get the deserved justice.
Is My Stockbroker Engaging in Misconduct?
Honestly, it might not be easy to tell if your stockbroker is engaging in any shady dealings. Nonetheless, you need to be extra watchful and study the investment result behavior. That being said, here are some signs that you should look out for in case you suspect your stockbroker is engaging in misconduct.
- Have you noticed any recent trend of an excessive [and unusual] amount of trades
- Is there a sudden loss that is larger than the average?
- Did the broker push to you any risky or unsuitable investment?
- Have there been unexplainable losses or withdrawal in and from your account?
- Did the broker invest in your account without filling in on all the necessary details?
- Are there any trades in your account that you don’t understand?
If the answer to all these questions is yes, then your broker is most-likely engaging in misconduct with your investment portfolio. In case you notice any of the signs related to your account, contact a professional broker misconduct attorney to help you accordingly.
Reliable Broker Misconduct Lawyers
The Doss Firm, LLC firm applies its professional legal services to anyone that has been a victim of broker misconduct. We will help you recover your losses and take legal actions against the responsible broker/brokerage firm. Do not hesitate, reach out to us today and save you future investments.