You have the right to expect honest advice from your investment advisors and from companies selling the investments and advice that is appropriate to your circumstances. Laws exist to protect your investments.
Your claims may include the following:
Overconcentrated Portfolios – Broker recommends “loading up” on certain “safe” or “quality” investments. In the wake of the recent financial crisis, there have been many cases where brokerage firms loaded up on preferred stock in Fannie Mae and Freddie Mac and Citigroup.
Risk Profile Change – Broker has changed your investment strategy without your input. An example would be to change your investment profile or objective from conservative to aggressive.
Negligent Retirement Advice – Broker provides fraudulent stock research.
Churning – Broker excessively trades or constantly turns over your account, for the purposes of generating brokers’ commissions.
Unauthorized Trades – Without written or other authority from you, the broker executes trades without authorization.
Fraudulent Disclosure of Information – The broker or brokerage firm misrepresented information or omitted information that would have been important to the investor in reaching their decision.
Fraudulent Preparation of Your Information – Broker completes paperwork related to your investment with false information on your goals and objectives, risk tolerance, income and net worth.
Switching Mutual Funds/Annuities – Broker advises you to exchange one mutual fund or annuity for another when it is not in your best interest to do so. The primary motivation in such situations may be earn higher commissions to your financial advisor.