You think your financial advisor has committed investment fraud, when should you lawyer up?
A securities arbitration attorney can be an essential asset if you have questions about what a financial advisor is doing with your money, have been under-informed or misinformed about your investments, or are facing an upcoming hearing with the Financial Investment Regulatory Authority (FINRA) about your investments. Here are five signs you should contact your securities arbitration attorney today:
1. You want a FINRA hearing
If you already know that you’ve been treated unethically or illegally by a broker or financial advisor and want a FINRA hearing, an experienced securities arbitration attorney will help you draft and file a claim with FINRA that describes how your broker or advisor’s negligence or unethical activity lost you money.
2. You have an upcoming FINRA hearing
It’s extremely important to have an attorney represent you during all stages of your FINRA hearing. The advisory or investment firm will almost certainly be represented by an attorney who understands the ins and outs of securities law, so it’s essential that you have one as well to increase the chances of a favorable outcome or settlement.
Your attorney will also help you select an arbitrator or arbitrators for the hearing. FINRA mandates that potential arbitrators be approved by both parties before the arbitration can begin. Without an attorney’s guidance in this selection process, you may be stuck with an arbitrator who is biased towards the investment firm and will not arbitrate your case fairly.
3. You’ve lost money on an investment without being informed of the risks
According to FINRA, brokers and financial advisors are required to inform their clients about all potential risks, costs, fees, and other potential downsides of an investment before recommending or placing investor money in it.
In addition, brokers and advisors must analyze an investment for its suitability to the financial goals of an individual client before recommending it. Both misinforming clients about their investments and placing them in investments that are unsuitable for their goals are grounds for a FINRA hearing.
4. Your financial advisor has limited your access to your funds without informing you beforehand
According to FINRA, investors have specific rights when it comes to dealing with brokers and financial advisors. Brokers and advisors must allow clients timely access to their funds and, if there are any limitations or restrictions, they must inform clients well beforehand.
5. Your financial advisor has been trading your investments excessively
Some financial advisors will engage in a process called churning, or excessive trading, to increase the size of their commissions by trading in excess of the investor’s goals. Activities, including churning, are identified on FINRA’s prohibited activities list and are a serious violation of the fiduciary duties of financial advisors.
Remember, if you’re questioning whether your financial advisor is engaging in illegal or unethical activities, if you’ve lost money on an investment that you weren’t fully educated about, or if you have a case that’s about to be arbitrated by the Financial Investment Regulatory Authority (FINRA,) you should to contact your securities arbitration attorney immediately.
Silver Law Group offers complimentary case reviews for investors who think they may be a victim of investment fraud. If you need legal support in your fight to recoup your losses and find justice, contact us today.