Overconcentration Lawyers

Can You Hold Your Broker-Dealer Liable for Your Portfolio Losses?

UBS Ordered To Pay Senior Investor More Than $532K For Alleged Overconcentration 

Broker-dealers have a duty to make sure they properly diversify clients’ accounts, including making sure that their financial advisors don’t concentrate too much of any investor’s money on one particular investment or asset class. Unfortunately, overconcentration by a broker is one of the reasons that investors lose money.

On July 3, 2023, Financial Industry Regulatory Authority (FINRA) arbitrators awarded one Texas investor nearly $533K in her overconcentration loss lawsuit against UBS Financial Services. The claimant contends that a UBS broker in Dallas unsuitably overconcentrated her portfolio with overleveraged “below-investment-grade securities and failed to advise her about credit line balances so she wouldn’t be impacted by “forced liquidations” and “margin calls.”

If you are an investor who believes you may be the victim of concentration, please contact Shepherd Smith Edwards and Kantas Overconcentration Lawyers today. Our skilled overconcentration lawyers represent retail investors, senior investors, retirees, wealthy investors, and institutional investors in suing their broker-dealers for damages.

What Should You Know About Overconcentration?

The failure to diversify a customer’s account is a type of broker misconduct. Not only can it expose an investor to a high degree of risk, but also it takes away the protections that can come with having a properly allocated portfolio. For example, if an investor is too heavily invested in oil and gas investments and energy prices plunge, this may lead to significant losses which could have been offset had the customer been better invested elsewhere as well.

Overconcentration tends to be a poor investment strategy, which makes it unsuitable for most investors. Unfortunately, part of the appeal for broker-dealers to act against a customer’s best interest by concentrating their account may be that the more they sell one particular kind of investment, asset class, or market segment, typically the more they can earn in commissions and fees—especially when high-risk investments are involved.

How Can Our Savvy Overconcentration Lawyers Help?

If you contact us, we can provide you with a free, no-obligation case assessment. Should we decide to work together, we will investigate what type of broker misconduct was involved and prepare/file your investor loss claim for you. We will provide you with quality legal representation before the panel of FINRA arbitrators.

More than 90% of investors have received full or partial financial recovery when working with one of our seasoned overconcentration lawyers. You may be able to hold your broker-dealer liable for losses.