Addressing Disputes with Your Financial Advisor

Simms Law, P.C.                  June 14, 2022

Losing money is no fun. Often, financial losses are simply a result of the market or the performance of a particular investment. Sometimes, however, financial losses are caused by the actions or inactions of financial professionals. Below is an overview of what to do when disputes arise with your financial advisor. 

Understand Your Rights As An Investor

As an investor, you’re entitled to certain rights. These rights are detailed in the North American Securities Administrators Association’s Investor Bill of Rights. Some of your rights as an investor include:



• The right to ask for and receive information about the work history and professional background of your financial advisor;
  
• The right to obtain complete information about the obligations, risks, and costs of investments;
  
• The right to receive recommendations that are consistent with your investment objectives and financial needs;
  
• The right to receive accurate and understandable account statements;
  
• The right to understand the terms and conditions of your investments;
  
• The right to receive a copy of all completed account agreements and forms;
  
• The right to access your funds in a timely manner;
  
• The right to discuss problems concerning your account with your firm’s branch manager or compliance department; and
  
• The right to receive complete information about sales charges, commissions, service charges, and other fees and penalties.

Don’t Immediately Blame Your Financial Advisor

Although your financial advisor has a duty to act in your best interests, you must keep in mind that investing is inherently risky. In other words, investment losses aren’t always the result of your financial advisor’s negligence. As an investor, you aren’t guaranteed a return on your money. Markets are risky, and investors stand to gain or lose money at any time. Therefore, you should only pursue legal action against your financial advisor if you believe you’ve been defrauded in some way.

Common legitimate complaints against brokers and advisors include:

Misrepresentation: Misrepresentation occurs when a financial advisor entices a client into making an investment based on false information. This includes information that is omitted by the financial advisor in presenting an investment to a client.

Unsuitability: An unsuitable investment is one that doesn’t mesh with an investor’s financial goals. When a financial advisor recommends or makes an unsuitable investment, the investment advisor can be held liable for any resulting losses.

Contact An Investor Representation Attorney

If you’ve suffered financial losses due to the action or inaction of a financial professional, you need an experienced investor representation attorney on your side. At Simms Law, P.A., we are dedicated to protecting the interests of investors. We always take our clients’ concerns seriously, and we know what is at stake when an investor suffers losses in the financial markets. Therefore, if you require expert legal guidance in Florida, please contact us for a consultation.