New Orleans Regulation Best Interest Law Firm

Shepherd Smith Edwards and Kantas is a New Orleans-area law firm that helps Louisiana investors recover damages when brokers prioritize their own profits over client interests, in violation of the SEC’s Regulation Best Interest. With over 30 years of experience, the firm provides expert representation in FINRA arbitration and litigation to hold financial advisors accountable for misconduct like unsuitable recommendations and hidden conflicts of interest.

The Shepherd Smith Edwards and Kantas New Orleans Regulation Best Interest Law Firm  Provides Skilled Securities Representation To Louisiana Investors

If you reside in the Bayou State and sustained losses because your financial advisor ignored your best interests, you may be able to pursue damages from them. Our Louisiana Regulation Best Interest law firm is made up of a seasoned securities law team that can help you determine whether you have grounds for this type of legal claim. Contact Shepherd Smith Edwards and Kantas (investorlawyers.com) today to request your free case consultation. Our securities law office is conveniently located in the New Orleans area in Metairie.

What Is Regulation Best Interest?

Established by the US Securities and Exchange Commission (SEC), Regulation Best Interest (Reg BI) stipulates that brokerage firms must act in the best interest of retail customers when recommending investment strategies and transactions. This means that the firm and its registered representatives cannot prioritize their interests over yours. This regulation, which went into effect in June 2020, mandates a higher standard of care than the Financial Industry Regulatory Authority’s (FINRA’s) Suitability rule, which requires that any recommendation made is appropriate for a customer, given their investment profile.

The SEC’s Reg BI Has A Number of Key Obligations:

• Identify and eliminate conflicts of interest. If getting rid of the conflict isn’t possible, then the broker-dealer should engage in efforts to mitigate the conflict.
• All material facts about the product/strategy, and conflicts of interest that can’t be eliminated must be disclosed totally and clearly to retail customers.
• Brokerage firms must engage in reasonable due diligence to ensure that the recommendation they are making is, in fact, in the customer’s best interests. This includes taking the time to fully understand an investment and strategy, its risks, costs, and rewards, and whether it’s in line with an investor’s profile in terms of their goals, risk tolerance, level, age, and more.
• Setting up and keeping up firm policies that are reasonably designed so that the broker-dealer and its registered representatives are able to comply with Regulation Best Interest. This includes regularly reviewing compliance policies, requiring proper training related to Reg BI requirements, and making sure there are brokerage firm members tasked with overseeing compliance.
• All disclosures, including conflicts of interest, must be made in a fair, full, and timely manner so that retail investors can make informed decisions about any recommendations.

Proper recordkeeping of all recommendations must be generated. These records must explain why these recommendations were made to the customer. The records must be kept for six years.

I’m a Louisiana. How Can I Know If My Portfolio Losses Were Caused By Regulation Best Interest Violations?

When a broker disregards your best interests, this is considered financial advisor misconduct. However, proving this can be difficult, which is where our skilled New Orleans Regulation BI attorneys come in. Shepherd Smith Edwards and Kantas has been representing investors throughout Louisiana for more than 30 years.

Examples of Possible Regulation Best Interest Violations By A Broker:

• Your financial advisor engages in mutual fund switching in your account. This costs you unnecessary fees, even as they profit from the transactions.
• Your stockbroker recommends an unapproved investment that hasn’t been properly vetted or approved by their brokerage firm. The financial advisor doesn’t tell you that they have an outside financial interest in the product.
• Your portfolio was overconcentrated in risky alternative investments that charge high fees, even though you are a retail customer who shouldn’t even be exposed to these types of securities and products.

How Can Our New Orleans Reg BI Law Firm Help?

We can assess the cause of your portfolio losses during your free, no-obligation case consultation with us. We offer robust and experienced securities representation to Louisiana investors, whether it’s against a local brokerage firm, a regional broker-dealer, or a large Wall Street firm.

Shepherd Smith Edwards and Kantas has represented thousands of investors related to more than a thousand matters in arbitration, mediation, and litigation. More than 90% of our clients have secured awards or settlements through our dedicated efforts.

Call (504) 324-0252  or (800) 259-9010 or fill out our online form.

Lakeway Two
3850 N Causeway Blvd #200-B
Metairie, LA 70002