Suitability

Does my broker or advisor have a duty to recommend suitable investments?

All stock brokers and financial advisors have a duty to recommend suitable investments and investment strategies to their clients. A recommendation is suitable if it comports with the client’s investment objectives, risk tolerance, investment experience, investment time horizon, liquidity needs, and income needs. The duty to recommend suitable investments cannot be disclaimed through risk disclosures or waivers.

 

Did my broker or advisor do this intentionally?

There are many reasons why a broker or advisor might recommend an unsuitable investment strategy. Sometimes, the broker does not have a proper understanding of the client’s investment profile because he has not spent the necessary time to get to know the client and his objectives and constraints. Sometimes the broker does not have a proper understanding of the products he is recommending to the client or the way that the products affect the client’s overall portfolio. Sometimes the broker is motivated by self-interest (e.g. commissions). Sometimes, the broker is simply incompetent.

 

Can I consult with an attorney about an unsuitable investment recommendation?

If you have been damaged as a result of an unsuitable investment recommendation, Mika Meyers, PLC may be able to help you recover your losses. We will evaluate your potential claim at no cost and then counsel you as to how you should proceed. We have helped dozens of investors recover losses in suitability cases. If you wish to discuss your claim with an experienced attorney who specializes in this area, please call Daniel J. Broxup at (616) 632 8059.