Mississippi Unsuitability Law Firm
Our Gulfport, MS Securities Attorneys Represent Magnolia State Investors Who Have Suffered Losses Because of Inappropriate Recommendations By Their Financial Advisor
Throughout Mississippi, the Shepherd Smith Edwards and Kantas Mississippi Unsuitability Law Firm (investorlawyers.com) represents investors against broker-dealers and investment advisers. This is not the kind of legal claim that you want to make without trusted unsuitability lawyers by your side. Contact our Gulfport, MS securities law office today.
When Unsuitability By Financial Advisors Hurts Mississippi Investors
Both brokers and investment advisers are supposed to make only investment-related recommendations that are appropriate for the customer. For stockbrokers, FINRA Rule 2111—the suitability rule—mandates that they have a reasonable basis for thinking any investment or investing strategy they recommend is a fit for the customer to whom they are making the recommendation.
Brokers are also subject to the US Securities and Exchange Commission’s (SEC’s) Regulation Best Interest (Reg BI). This sets up a standard of conduct that requires brokerage firms to act in the best interest of retail customers when making recommendations. Meanwhile, registered investment advisers are held to a fiduciary standard when making recommendations that requires them to always prioritize their clients’ interests.
Unfortunately, despite these standards and rules, there are brokers and investment advisers who will make unsuitable investment recommendations, whether due to ignorance or a disregard of their clients’ best interests. Unsuitable recommendations can be harmful to an investor. Here are some examples of what can happen:
- A broker unsuitably recommends non-traded real estate investment trusts (non-traded REITs) to a retail customer who lacks the experience to understand the risks and extreme illiquidity involved. These alternative investments end up comprising a huge part of their portfolio. This is known as excessive concentration. It leaves the customer with huge losses when the non-traded REIT fails.
- A financial advisor decides that borrowing on margin is the investment strategy to employ in a wealthy retiree’s account, even though this person has made it clear that they are an unsophisticated investor and uninterested in taking on any risk. Margin abuse occurs in the account, and the customer loses most of their life savings.
- A stockbroker makes too many trades in a customer’s account. This is known as churning. The investor ends up paying too many fees while the financial advisor earns excess commissions from the transactions.
How Can Our Gulfport, MS Unsuitability Loss Attorneys Help?
Investors will retain the services of financial advisors because they need help managing their money. When broker negligence or misconduct leads to portfolio losses involving unsuitability, this may warrant grounds for filing an investment loss recovery claim against the firm and its registered representative. This is not the kind of legal case that you want to pursue without knowledgeable Gulfport, MS unsuitability attorneys by your side.
Many broker-dealers and investment advisers would rather deny wrongdoing or even blame the customer than pay for their losses. As a matter of fact, trying to resolve any investor loss claim with your financial advisor and their firm could harm any case you may have in the long run.
Shepherd Smith Edwards and Kantas has been representing investors for 35 years. We are a seasoned Mississippi unsuitability law firm whose legal team has a combined more than 100 years worth of collective experience in securities law and insecurity. We have represented thousands of investors in arbitration, mediation, and litigation. Our dedicated efforts have helped most of our clients to secure full or partial financial recovery.
Contact Our Mississippi Unsuitability Law Firm Today
If you suspect unsuitability in your investment account, contact our Gulfport unsuitability attorneys to request your free case consultation. We can help you determine the best course of legal action. If we decide to work together, we will provide you with robust securities representation and personalized attention. You will have everyone at our firm fighting for you while protecting your legal rights.
Call (228) 206-2493 or (800) 259-9010 or fill out this online form.
2118 18th St #100
Gulfport, MS 39501