Are you wondering if you can sue a financial advisor? Perhaps your advisor shifted firms, or you experienced investment fraud. Here are some helpful tips for filing a lawsuit against your financial advisor if this has happened to you. You can also use this information to file a lawsuit if your financial advisor is not performing their professional duties. Here are some of the main reasons why you can sue a financial advisor. In addition to investment fraud, you can also sue your financial advisor for negligence or breach of fiduciary duty.
Sue a financial advisor
In order to successfully sue a financial advisor, you must prove that he or she failed to uphold their professional obligations and put the client’s best interests above his or her own. In many instances, the financial advisor may be liable for the monetary loss that you incur as a result of the negligent or fraudulent actions of the financial advisor. This can be difficult to prove, however, because many financial advisors make agreements over the phone or in person, which may not always be documented well. The financial advisor may deny your claims, especially if there isn’t proof to support them. Large financial firms may also use sneaky tactics to prevent a candid discussion about the case in court.
You may also want to contact FINRA to file a complaint. Although most financial advisors provide good advice, it’s important to seek legal counsel if you think you’ve been mistreated by a financial adviser. Without the help of an attorney, you may not be able to recover the full extent of your financial losses. FINRA is a federal agency that regulates financial advisors and can help you file a complaint if you feel that your advisor has breached their duties.
Can you sue a financial advisor for investment fraud?
When an investment fails to meet expectations, an investor may consider filing a lawsuit against their financial advisor. In these cases, the financial advisor is negligent in their duties as a licensed investment advisor. The investor may also allege fraud, outright theft, or forgery. Depending on the circumstances, an investor may also have the right to pursue arbitration or litigation against their financial advisor. If you believe that your financial advisor has violated these standards, you should contact an experienced lawyer to pursue legal action.
To file a lawsuit against your financial advisor, you will need to gather evidence of their negligent actions. Gather bank statements and investment statements that tie losses to the financial advisor. Keep these documents in a safe place and be sure to keep them handy so that you can present them in court. Your financial advisor can be sued for negligence or fraud if they caused you to lose money. Depending on the nature of your investment fraud case, you may be able to recover some of the money that you lost.
Another type of investment fraud involves failure to diversify the client’s portfolio. This failure to diversify is actionable if the financial advisor fails to properly explain investment risks and their impact on the client’s overall portfolio. It also means that the financial advisor is recommending an undiversified portfolio, which may cause the investor to lose money. Such investments are typically not suitable for your risk profile, which is why you should carefully consider your financial advisor’s recommendations.
Can you sue a financial advisor after a financial advisor moves firms?
If you feel that your advisor has taken advantage of your trust and confidence by moving to another firm, you have several options for pursuing legal action. While there are no clear rules regarding suing a financial advisor who moves firms, there are some important things that you should look for before filing a suit. If the advisor has a bad track record, you may be able to sue him or her for breach of contract or breach of fiduciary duty of loyalty.
First, you must be aware of the protocol for broker recruitment, which is administered by the SEC or FINRA. This agreement limits the number of times an adviser can tell clients they’re moving and can’t ask them to transfer their accounts with them. Second, your adviser can only take limited client information to a new firm, like account numbers and assets, but not your Social Security number. Third, your adviser must comply with privacy laws governing the transfer of client information.
Third, the agreement must clearly define the rights of each party in the relationship. For example, if your advisor left the firm, he or she could take your clients with him or her. But if the advisor left the firm without buying you out, you can still file a claim for breach of fiduciary duty. The restrictions on the transfer of client assets would prevent the advisor from contacting you to solicit your business.
