Unsuitability – Securities Claims

It’s a stockbroker’s responsibility to understand each of their client’s situation and needs, and be able to determine what investments are suitable on a per client basis. If the portfolio is owned by an 85 year old single woman, the investment decisions need to be handled much differently than a 26 year old getting started in the market. An elderly investor does not have time to earn back losses in the market and must invest more conservatively than a younger person with years of future employment and time to save.

A broker, by law, has to do his or her due diligence and understand each client’s position to ensure the portfolio strategy matches the client’s objectives and financial goals. The Financial Industry Regulatory Authority (FINRA) implemented rules which require firms and brokers to learn about clients’ age, financial situation, objectives, and financial goals.

It is a broker’s responsibility to continue updating their knowledge of a client’s situation and be aware of any changes in their financial objectives.

If you, or somebody you know has lost money in an investment due to broker misconduct, please contact the securities attorneys at Ludin Law to learn how we can help you recover you investment.