We Represent Retail Investors and Retirees Whose Brokers Prioritized Their Firm’s Own Interests

Shepherd Smith Edwards and Kantas operates as a premier San Francisco Regulation Best Interest law firm representing Bay Area retail investors and retirees whose brokers prioritized firm profits over client interests. They help clients pursue FINRA arbitration claims to recover losses caused by broker misconduct, unsuitable recommendations, undisclosed conflicts, and Reg BI violations.

At the Shepherd Smith Edwards and Kantas San Francisco Regulation Best Interest Law Firm (investorlawyers.com), we represent investors who suffered losses because their broker failed to comply with the Securities and Exchange Commission’s Regulation Best Interest (Reg BI). This rule mandates that broker-dealers place the interests of retail customers over their own. Unfortunately, that doesn’t always happen, which can lead to an investment loss recovery claim against the firm.

If you are an SF Bay Area investor, or you reside in the surrounding areas, and you would like to explore your legal options, contact our San Francisco Regulation Best Interest law firm today to ask for your free case consultation.

 What Is SEC Regulation Best Interest?

This rule requires that brokers make sure that they are prioritizing the client’s best interests anytime they make an investment-related recommendation to an individual investor. This regulation applies whether the recommendation involves a financial product, securities transaction, or an investment strategy.

Brokers Must Meet Reg BI by abiding by the following obligations:

Disclosure: Providing full and fair written disclosures of any material facts about the recommendation and the customer-broker relationship. This must take place either before or at the time of the recommendation.

Care: Exercising reasonable care, skill, and due diligence to make sure they understand not just the investment recommendation and its risks or rewards, but also whether it is suitable for the customer and in their best interests.

Conflict of Interest: Setting up and enforcing written policies and procedures that are designed in a reasonable manner to properly deal with any conflicts of interest.

Compliance: Setting up and enforcing written policies and procedures so that the firm and its registered representatives can comply with SEC Reg BI.

Brokers also must abide by recordkeeping and record-making requirements.

Why Are San Francisco Bay Area Investors Suing Over Regulation Best Interest Violations?

Unfortunately, there are financial advisors that will prioritize their own best interests, including the higher profits they can make, over that of their customers. When this happens, leading to investment losses or the loss of potential earnings, a San Francisco investor may be able to sue their broker for damages.

Common examples of broker misconduct or negligence that may also be a Reg BI violation:

• Making an unsuitable recommendation of a too risky alternative investment because the broker will earn more in fees and commissions.
• Failing to properly vet a real estate-related product to make sure it is a legitimate and viable investment before selling it to a retiree or another individual investor.
• Overconcentrating a customer’s account in too many risky products because this is more financially beneficial to the broker.
• Running some type of investment scam and misappropriating investors’ funds.
• Applying a volatile or risky strategy even though your customer is an unsophisticated investor who has no financial tolerance level for this approach.
• Placing an elderly or sick investor’s money in illiquid products even though they made it clear from the start that they want easy access to their funds.

Just Because Your Broker Made A Suitable Recommendation Doesn’t Always Mean It Was In Your Best Interests

Before Reg BI went into effect, brokers were primarily being held to account over whether or not the investment recommendation was suitable for the customer. This allowed financial advisors to get away with recommending products or strategies that were not in a customer’s best interests as long as they were appropriate given the investor profile.

Why Should You Hire Trusted San Francisco, California Regulation Best Interest Attorneys To Represent You?

• This rule just went into effect seven years ago. It is important that you retain seasoned SF Bay Area Reg Best Interest lawyers who understand how it works and are familiar with the kind of legal strategies that will allow you to win your case.
• Shepherd Smith Edwards and Kantas has represented many investors who have been the victim of Reg BI violations and other kinds of broker misconduct or negligence.
• We are an experienced FINRA law firm that has won awards in FINRA arbitration for many investors, which is where your investment loss recovery claim against your broker will be made.

Talk To our San Francisco Regulation Best Interest Law Firm Today

Call (415) 287-0877 or (800) 259-9010 to ask for your free case assessment as to whether you have a San Francisco Regulation Best Interest investor recovery case on your hands.

1 Embarcadero Ctr #500
San Francisco, CA 94111