Unsuitable Securities

California Unsuitable Securities Lawyer

Information on Unsuitability

When your investment broker makes an investment recommendation, it is mandatory that he/she makes a reasonable attempt to ascertain your investment objectives prior to making the recommendation. If a recommendation is made that is unsuitable for your circumstances, your broker may be held liable for misconduct. A skilled and knowledgeable California investment fraud attorney from our firm can help you to be certain your legal rights regarding your brokerage investments are protected.

If you have received unfavorable advice from your investment broker, get in touch with an seasoned unsuitable investment advice lawyer in California at The Law Offices of Jonathan W. Evans & Associates. Complete our online form or dial (818) 760-9880.

How Do Investment Advisors Make Recommendations?

In order for your financial investment advisor to be able to make a recommendation for you, he must first determine if this recommendation is suitable for your financial circumstances, including your financial investment objectives as well as your financial and tax status. A record must be kept by the brokerage firm of any important financial information regarding you and your account. This record must be updated by your broker whenever your financial situation alters. If this record is not kept current, your broker may make recommendations that are unsuitable for your current financial circumstances. A broker must also be current on which stocks are presently in your portfolio in order to prevent overconcentration in one stock which can be a risky and therefore unsuitable investment for you.

How Does Broker Fiduciary Duty Protect Clients From Unsuitable Investments in California?

In California, brokers are considered fiduciaries, meaning they are legally obligated to act in the best interest of their clients. This fiduciary duty requires brokers to exercise utmost good faith, reasonable care, and loyalty concerning their customer's account. It demands that they put the interests of the customer first and disclose all relevant facts relating to investments.

One crucial aspect of this duty is ensuring that any investment, strategy, or trade recommended to a client is suitable for that client's financial situation and goals. This requirement is codified in FINRA Rule 2111. An unsuitable investment may amount to a breach of fiduciary duty.

Moreover, while brokers generally do not have a duty to monitor a customer's account continuously, they do have a responsibility to ensure that the recommendations made at the time of purchase were suitable based on the customer's financial situation and investment objectives at that time.

The broker's fiduciary duty serves as a protective measure against unsuitable investments, providing legal recourse for clients who believe their broker has failed to meet this standard. If your investment broker made a poor recommendation, do not hesitate to reach out to a qualified unsuitable investment advice attorney serving clients throughout California and the United States. If you were burned by your broker, we can help you recover your losses. Get in touch with The Law Offices of Jonathan W. Evans & Associates as soon as possible by dialing (818) 760-9880.

Unsuitable Securities Attorney Serving California

The professional unsuitable investment advice attorneys at The Law Offices of Jonathan W. Evans & Associates have 35 years of experience in securities fraud law, successfully helping clients to protect their rights. If you feel you might be a victim of investment fraud, you can rest assured that we will do everything we can to bring about a successful resolution to your securities fraud dispute. We are committed to devoting all of the necessary time and resources into launching a thorough investigation into all aspects of your case.

Contact a California unsuitable investment advice lawyer from The Law Offices of Jonathan W. Evans & Associates to discuss your legal needs and options.

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