I’m here today to share a concerning turn of events in the financial services sector, where Mark Elias, a seasoned professional under the UBS Financial Services Inc. banner, is grappling with serious allegations. These include advising or recommending a client consider an investment strategy that wasn’t suitable or proper and which may have also involved failing to provide a fair and balanced presentation of the potential risks and rewards.
The sum in dispute? A staggering $700,000, underscoring the severity of the allegations and complaint.
Diving Into the Details
When we talk about ‘unsuitability’ in finance, it doesn’t deal with a simple preference mismatch but a possible sales practice violation. In most instances, the allegations involve steering an investor client towards an investment o product or investment strategy that didn’t align with their investment goals, investment objectives or investment risk tolerance. That’s certainly not how it’s supposed to done.
In this context the alleged ‘misrepresentation,’ also suggests the potential risks were not properly disclosed to the investor customer in a fair and balanced manner, but could have been omitted in whole or in part, or downplayed in such a manner that the actual level of risk associated with the investment product or overall investment strategy was not accurately or properly portrayed such that the investor client could make an informed decision.
This isn’t just about numbers; it’s about the fundamental trust investors need to have in those handling their hard-earned money. Investor customers often let their guard down and rely upon their trusted professional financial advisors, and most of the financial advisors have earned and deserve that trust, unfortunately, a small percentage may be less than ethical, or may simply make mistakes. Such alleged missteps could directly contravene FINRA Rule 2111 (and other rules, regulations or firm policies). Most investor customers trust their final advisors as professionals to always act in their clients’ best interests, and the majority do so. Whether or not that was the case here, still remains to be seen.
Why This Matters To You
Most investor customers do not have the experience, sophistication, knowledge, or resources to research the investment products and investment strategies, nor do they study the different options available and consider all of the variables – they rely upon their professional financial advisors to do so. Investment recommendations and strategies are often followed by the customer investor because they are coming from a professional relationship built on a foundation of trust. If these allegations and claims against Elias are accurate, not only could he and UBS Financial Services be facing financial consequences in the form of potential liability and damages, but it also has a broader impact as it causes many other investor clients to question the accuracy or quality of the advice and recommendations, or possibly any underlying or undisclosed motives or incentives for recommending same.
It’s your cue, as an investor, to remain vigilant and ask questions, especially if something may not look or sound accurate. Of course most investments have some risk, but being able to understand the components, and what may impact the level of risk, and the actual level of risk or potential impact of negative performance are all important factors to consider as well.
Recognizing and Addressing Negligence or Impropriety in the Financial Services Industry
Mistakes or negligence in the sales practices or supervision policies or practices in the financial services can be hard to spot for the average investor, it is often hidden behind complex terminology, complex products, and complex investment strategies. Yet, a review of yyour accounts and activity should take place routinely, no matter how much you trust your financial professional, it never hurts to review and verify. If you observe unexpected activity, excessive trading, or a lack of diversification (too many eggs in one basket), these are all potential issues you may want to question.
If something looks off, act quickly. Speak up, and listen carefully to any explanation. If it does not sound legitimate, you may want to consider getting a second opinion, contacting a securities lawyer for a no-cost review, and, if necessary, you can often consider addressing any losses or damages through the FINRA arbitration process. Experienced securities arbitration attorneys such as Haselkorn & Thibaut, P.A. (www.InvestmentFraudLawyers.com) are very familiar with these types of issues, any may well have already undertaken steps toward investigating issues like those raised in the above example related to Elias and UBS Financial Services Inc..
Be an educated Investor – Knowledge Is Your Best Protector
In some situations, a simple public records search may be quite helpful. Tools such as FINRA’s Brokercheck website can be helpful, and if you are unfamiliar and would like some assistance, the lawyers at the Haselkorn & Thibaut, P.A. law firm (www.InvestmentFraudLawyers.com) can be available to assist you.
In the wise words of Warren Buffett, “It’s only when the tide goes out that you learn who has been swimming naked.” Don’t find yourself exposed when financial tides shift. Be proactive, get educated, stay informed, and always verify the credentials of your financial advisor, like checking their FINRA Brokercheck report, for that added peace of mind.
A financial fact to consider: even when there are no specific issues related to negligence or impropriety, a study found that bad financial advisors can cost investors up to 3% in returns annually, which can significantly impair long-term wealth accumulation. Don’t let that be your story. For more insights and to verify the background of your financial advisor, [check out (https://brokercheck.finra.org/). If you need assistance, or want some help reviewing, or investigating issues, please do not hesitate to contact an experienced financial services law firm such as Haselkorn & Thibaut, P.A.
