Overconcentration

Overconcentration Attorneys

Published on: July 15, 2024 | by Shepherd Smith Edwards & Kantas, LLP

Are You The Victim of Overconcentration by Your Broker? Shepherd Smith Edwards and Kantas Overconcentration Attorneys Want To Talk To You

As an investor, you are always taking on a certain degree of risk. What you invest in is as important as whether or not your portfolio is properly diversified. This means making sure you aren’t placing all of your money in just one product or asset class especially if it is a high-risk one. As a matter of fact, according to market experts, diversification is considered a solid investing strategy and it can minimize the risk and magnitude of your losses if certain investments do poorly.

If you have hired a broker to manage your portfolio, it would be wonderful to think that they would automatically and properly diversify your assets according to your financial goals, risk tolerance level, age, investing experience, and other key factors. Unfortunately, that doesn’t always happen and many investors end up losing money because their financial adviser overconcentrated their account.

Overconcentration Attorneys

Published on: June 19, 2023 | by Shepherd Smith Edwards & Kantas, LLP

Did You Suffer Portfolio Losses Because Of A Failure To Diversify?

Our Skilled Overconcentration Attorneys Help Investors Pursue Financial Recovery

Financial advisors should know the importance of properly allocating an investor’s funds among different kinds of financial products, asset classes, or market sectors. Seeing as all investments come with some risk, proper diversification increases protection from serious losses because should one investment plunge in value, the hope is that the returns generated by the other financial products in the portfolio can help offset the overall impact on an investor’s money. In other words, to use a popular phrase, “Don’t put all of your eggs in one basket.”

RBC Capital Markets to Pay $1M Over Unsuitable High-Yield Bond Concentration in Customer Accounts

Published on: December 27, 2021 | by Shepherd Smith Edwards & Kantas, LLP

RBC Capital Markets Settlement With FINRA Includes a Fine and Restitution

RBC Capital Markets has reached an agreement with FINRA in which the broker-dealer will pay $1M to resolve allegations of overconcentration in customers’ accounts involving high-yield bonds. Without denying or admitting to the self-regulatory organization’s (SRO’s) findings, RBC consented to a censure, a $550K fine, and more than $456K in restitution.

According to FINRA, the brokerage firm did not identify over 100 client accounts with conservative profiles that should have been reviewed for a possible unsuitable concentration of high-yield bonds.