Structured Product Losses May Lead To Financial Advisor Fraud Lawsuits. Our Structured Product Attorneys Represent Investors In Pursuing Damages
Shepherd Smith Edwards and Kantas (investorlawyers.com) represents investors against the broker-dealers and investment advisers that unsuitably recommended and sold them structured products. These pre-packaged investments tend to be high-risk and illiquid. They may not be an appropriate recommendation for many investors, especially unsophisticated retail investors with low-to-no risk tolerance levels.
If you are wondering whether financial advisor misconduct, negligence, or bad advice played a part in your structured product losses, contact us today to request your free, initial case consultation.
What Are Structured Products?
This is a prepackaged investment involving a security (or a basket of securities), an index, a commodity, a foreign currency, debt issuance, and or derivatives. These investments can be sold straight to investors or be embedded in other products. There are different kinds of structured products that can be comprised of these different components.
Brokers and investment advisers have been known to market structured products as conservative investments when, in fact, a lot of these investments can be very risky as a result of leveraged features or due to market exposure. Structured products are generally complex investments that, according to the US Securities and Exchange Commission (SEC), are securities with cash flow characteristics depending on at least one index or with embedded forwards or securities or options; an investor’s return and the issuer’s payment obligations are determined or impacted by changes in the value of underlying assets, interest rates, indices, or cash flow.
Examples of Structured Products:
- Structured notes (callable and autocallable)
- Exchange-traded notes
- Constant proportion debt obligations
- Hybrid-linked notes and deposits
- Interest rate-linked notes and deposits
- Equity-linked notes and deposits
- Credit-linked notes and deposits
- FX and commodity-linked notes and deposits
Structured products have become attractive to both high-net-worth investors and retail investors although they aren’t necessarily suitable for the latter. Benefits can vary depending on the product and may include principal protection, a tax-efficient way to be exposed to taxable investments, enhanced returns, and more.
Risks of structures products may involve credit risks tied to unsecured debt, no guarantee that money will be made even when high-risk derivatives are involved, non-transparency about pricing or hidden costs, the possibility of loss of principal despite any guarantees, interest rate fluctuations, challenges cashing out prior to maturity or trying to resell the structured product, and more.
A structured product can be hard to explain even to a sophisticated investor and financial advisors themselves may not fully understand all of the risks to be able to properly explain to a customer what they are taking on.
Why Would You Sue Your Broker Over Your Structured Product Losses?
Unsuitable investment recommendations, bad investing advice, misrepresentations and omissions of the risks, due diligence failures, breach of fiduciary duty, misappropriation, fraud, misconduct, and negligence have been known to contribute to structured product losses.
Shepherd Smith Edwards and Kantas Structured Product Attorneys can help you determine whether your portfolio losses involving structured products may have been caused by financial advisor misconduct or carelessness. You may have grounds for suing your broker-dealer or investment adviser for damages.
Going after a brokerage firm or registered investment adviser can be very difficult, which is why you want to hire knowledgeable structured product attorneys that know how to pursue this kind of claim and maximize your chances for a full financial recovery.
We have represented thousands of investors and collectively recouped many millions of dollars on their behalf in arbitration, mediation, or litigation. We genuinely care about our clients and want to help make them financially whole again. More than 90% of our clients have obtained full or partial financial recovery through our efforts and commitment.
Call (800) 259-9010.