Denver Regulation Best Interest Law Firm

We Represent Investors Whose Brokers Failed to Prioritize Their Financial Interests When Making an Investment Recommendation

As a premier Denver Regulation Best Interest Law Firm, Shepherd Smith Edwards and Kantas represents Colorado investors who suffered financial losses due to broker-dealer misconduct. Their experienced securities attorneys help clients hold financial advisors accountable under SEC Reg BI rules and pursue recovery through FINRA arbitration.

If you are a Colorado investor who suffered portfolio losses, and you are wondering whether your broker disregarded your best interests, Shepherd Smith Edwards and Kantas (investorlawyers.com) wants to talk to you. Our Denver Regulation Best Interest lawyers have more than 100 years of collective experience representing claimants against broker-dealers and investment advisers.

What Is Reg BI and How Does It Protect Colorado Investors?

This SEC regulation mandates that brokerage firms and their financial advisors place their retail clients’ financial interests over their own interests when making investment recommendations. It is important to note that this Regulation Best Interest  protects not just retail investors, but also high-net-worth individual investors and accredited retail investors—essentially, natural persons—who have an account with a broker-dealer.

Reg BI comes with the following obligations: 

Care: Financial advisors must exercise reasonable care and due diligence to ensure that they understand an investment recommendation, its rewards and risks, as well as whether it is in the best interests of the customer.

Disclosure: Broker-dealers must offer complete and fair written disclosures about any material facts involving the investment recommendation they are making.

Compliance:  Written procedures and policies that enable the brokerage firm and its financial advisors to comply with Regulation Best Interest must be put in place and executed.

There are also record-making and recordkeeping requirements that financial advisors must fulfill.

I’m A Colorado Investor. How Do I Know Whether I’m The Victim of Regulation Best Interest Violations By My Broker?

• It is important to note that just because your financial advisor met the Financial Industry Regulatory Authority (FINRA)’s suitability obligation by making a recommendation that was appropriate for you given your age, risk tolerance level, and financial goals, this doesn’t always mean that it was a recommendation that satisfies SEC Reg BI. For example, there may be other, comparable investments that were more liquid or didn’t require you to pay as much in commissions that your broker-dealer could have recommended instead.

 

What Are Possible Signs That Your Financial Advisor Ignored Your Best Interests? 

• Your broker concentrated too much of your money in a high-risk investment or a single market sector even though you are a low-risk investor with conservative financial goals.
• There were unresolved conflicts of interest, such as your financial advisor failing to disclose that they stood to earn bonuses for selling you a proprietary product.
• Excessive switching from one investment to another for the main purpose of earning the brokerage firm and their registered representative more commissions.
• Your broker was churning, also known as excessive trading, in your account.
• You were sold illiquid alternative investments when you made it clear that liquidity is important to you so you can easily access your money.
• Your financial advisor recommended an unsuitable, aggressive investment strategy to your portfolio without explaining the risks to you and that this could become a too volatile approach given that you are a retail customer.

Even when you know the possible signs, determining whether you were the victim of Regulation Best interest violations by your broker can be very difficult. This is just one of the reasons why you need Denver Reg BI lawyers on your side.

Why Should I Hire A Skilled Colorado Regulation Best Interest Lawyer To Represent Me?

• Proving broker misconduct or negligence is never easy. Brokers will usually have their own lawyers representing them. Broker-dealers are highly unlikely to ever admit they’ve disregarded your best interests and prioritized their own financial concerns.
• With a Reg BI claim, there will likely be other grounds for suing your broker, such as unsuitability, misrepresentations and omissions, negligence, excessive trading, failure to supervise, or broker misconduct. Seasoned Denver, CO SEC Reg BI lawyers can help you determine what these other legal causes are and include them in your FINRA arbitration claim.

Shepherd Smith Edward and Kantas is an experienced FINRA law firm that has represented many investors in this legal venue. Over the decades, our Denver securities lawyers have secured a combined many millions of dollars for thousands of clients against their broker-dealers and investment advisers.

Explore Your Legal Options With Our Colorado Securities and Exchange Commission Regulation Best Interest Attorneys

To schedule your free case consultation, call (800) 259-9010 or (720) 439-2827 or contact us online.

Our Colorado Securities Law Office

1700 Lincoln St #2710
Denver, CO 80203