Our Trusted New Orleans Unsuitability Lawyers Are Here For Investors All Over The Bayou State
Unsuitable investment recommendations by a broker are one of the most common reasons that Louisiana investors end up losing money and decide to sue for damages. From our New Orleans securities law office in Metairie, Shepherd Smith Edwards and Kantas New Orleans Unsuitability Lawyers (investorlawyers.com) can help you explore your legal options.
When Unsuitability Leads To Investor Losses
The Financial Industry Regulatory Authority (FINRA), which is an organization that regulates brokerage firms, requires that all registered financial advisors and their firms have reasonable grounds for making any kind of investment recommendation to an investor. This can include suggesting a particular financial product, trade, portfolio structure, or strategy.
Suitability is determined in part by the customer’s investor profile, which should include pertinent information about their financial goals, risk tolerance level, investing experience, liquidity needs, tax status, age, financial situation, investment time horizon, the makeup of their portfolio, and other key information.
Suitability is also determined by whether or not the client has the level of investing experience necessary to understand the nature of a recommendation and the risks involved. This is important for all investors, including retail investors, retirees, high-net-worth investors, accredited investors, and institutional investors.
To assess suitability, broker-dealers should take into account the following analyses:
Customer-specific suitability: The broker must have reasonable grounds for thinking the investment recommendation is appropriate for the specific customer.
Reasonable-basis suitability: The financial advisor must have a solid understanding of the possible risks and rewards, as well as reasonable grounds of suitability for what they are recommending.
Quantitative suitability: This addresses whether an investment recommendation would be appropriate not just as a one-off but on quantitative grounds. For example, how does this one recommendation affect the rest of the customer’s portfolio, or when their entire investment profile is factored into consideration?
What Should Louisiana Investors Do If They Were The Victim of Unsuitable Recommendations?
Contact our Metairie, LA unsuitability law firm today. Not only can we help you determine whether your financial advisor violated suitability rules, but also, there may be other legal reasons for pursuing damages, including overconcentration, selling away, misrepresentation, broker misconduct, fraud, negligence, or a failure to supervise.
Shepherd Smith Edwards and Kantas represents Louisiana investors against regional and local brokerage firms, as well as broker-dealers all over the US, including the biggest Wall Street firms. Trust us when we tell you this is not the kind of legal claim that you want to make on your own.
Unsuitability recovery cases, like all investor-broker disputes, are usually filed in FINRA arbitration. Our Louisiana securities firm has successfully represented thousands of investors in arbitration, negotiations, mediation, and litigation over the decades. When you work with us, you are availing of more than 100 years of collective experience in securities law and the securities industry.
Many of our New Orleans unsuitability attorneys were former financial advisors who quit that industry because they didn’t like the bad broker behaviors they witnessed that were hurting instead of helping investors. It’s why we do what we do now, which is to fight for clients like you.
To sue for unsuitability, you will need to show that your financial advisor made investing recommendations that were inappropriate for you, given your investor profil,e and that they knew or should have known that this is what they were doing. You will have to prove that it was because of the unsuitable recommendation that you ended up sustaining serious investment losses. That is where we can come in.
To schedule your free, initial case assessment with one of our Louisiana Unsuitability Attorneys:
We represent New Orleans investors in all 13 parishes, including Jefferson Parish, Tangipahoa Parish, St. Bernard Parish, St. James Parish, and investors all over the state of Louisiana. When you work with us, know that you will receive personalized attention and quality representation. Because we work on a contingency basis, you will only pay for our legal services if we obtain financial recovery for you.
Call (504) 324-0252 or (800) 259-9010 or fill out this online form.
Our New Orleans Unsuitability Lawyers’ Office:
Lakeway Two
3850 N Causeway Blvd #200-B
Metairie, LA 70002