Mutual funds typically use fund assets to pay annual operating expenses, including management fees, administrative fees, and distribution costs. The cost to the investor is presented in the form of a ratio of annual operating expenses to assets under management, which is known as the expense ratio. Expense ratios can vary dramatically from…
In suitability cases, financial advisors invariably argue that they cannot be held liable for inducing a plaintiff to purchase an unsuitable investment if the risks associated with the investment were fully disclosed to the plaintiff in a prospectus or other offering document, even when the advisor’s oral representations regarding the…
Occasionally our firm is contacted by an investor who has suffered the misfortunate of having his or her 401k savings either fraudulently withdrawn or mistakenly transferred to a third-party who has absconded with the money. When the money cannot be easily recovered from the recipient, or cannot be recovered at all,…
Financial advisors owe fiduciary duties to clients with whom they have a relationship of trust and confidence. Calhoun County v. Blue Cross Blue Shield Michigan, 297 Mich. App. 1; 824 N.W.2d 202 (2012) (addressing agent-principal relationship generally); Hamameh v. Gilson, 2014 WL 6679261 (Mich. App. 2014) (addressing financial advisor-client relationship specifically); Kleer v.…