Dallas Unsuitability Law Firm

The SSEK Dallas TX Unsuitability Law Firm is Representing Texas Investors Whose Brokers Made Too Risky or Inappropriate Recommendations

From our Dallas, TX securities law office, Shepherd Smith Edwards and Kantas (investorlawyers.com) represents those who suffered losses because of unsuitable investment recommendations by their financial advisors. The Financial Industry Regulatory Authority (FINRA) mandates that broker-dealers and their registered representatives have reasonable grounds for making any kind of investment recommendation to a customer. Unfortunately, unsuitability remains one of the most common reasons that investors end up sustaining serious portfolio losses that could otherwise have been avoided.

Contact our seasoned Dallas unsuitability attorneys today so that we can help you explore your legal options.

What Is an Unsuitable Recommendation And How Can This Hurt Texas Investors?
This may refer to a recommended investment, trade, or investing strategy that a financial advisor recommends to a customer even though it is inappropriate for them. Suitability is determined according to investor profile, age, level of investing experience, risk tolerance level, financial goals, liquidity needs, investment time horizon, the makeup of their existing portfolio, and more. This is why it is so important that a broker performs the proper due diligence to ensure suitability for a customer—whether making sure it is a good fit for them or the security/asset they are promoting is not fraudulent. While it is often retail investors, conservative investors, retirees, and unsophisticated investors that fall victim to unsuitability, accredited and wealthy investors can also sustain serious losses if an inappropriate recommendation is made.

A few examples of unsuitable investment recommendations:

• A broker markets a high-risk, illiquid alternative investment to a retail investor who has made it clear that they only want safe, low-risk investments.
• The financial advisor markets even more real estate investment trusts (REITs) to an investor whose brokerage account is already concentrated with too many of these investments.
• A broker-dealer pushes a high-yield margin strategy onto wealthy investors while misrepresenting this approach as low-risk, even though the latter is only true in certain market conditions. Six- and seven-figure losses result.
• The investor make it clear from the start that they need to be able to withdraw their funds at any time, yet their financial advisor infuses their portfolio with illiquid investments that keep their funds inaccessible for years.
• A broker disregards red flags indicating that an investment is fraudulent and markets the financial product to customers. These investors end up losing money in what proves to be a Ponzi scam.
• A financial advisor invests a first-time investor in oil and gas investments that are generally risky even for experienced investors.

Basically, unsuitability is a factor if the financial advisor’s recommendation is inappropriate for the specific customer. While a private placement might be a suitable recommendation for an accredited, experienced investor, it might not be good for a conservative retiree whose main priority is to keep their retirement funds safe.

We Also Represent Institutional Investors Who Have Fallen Victim to Unsuitability 

Our Dallas, Texas unsuitability attorneys represent not only individual investors, but also institutional clients,  as well as high-net-worth sophisticated investors. Such claims can be more complex, especially because with an institutional investor there may be multiple persons involved and proving what each of them understood about the risks involved can be challenging. The only way a financial advisor or their broker-dealer can escape accountability when it comes to unsuitability is if the institutional client has affirmatively stated it acted on its own—that is rare, seeing as they retained a financial services firm to make investment recommendations and manage their portfolio.

Regardless of your level of investing experience, the kind of investor you are according to your net worth, or whether you are an individual or an entity, you want to work with skilled Dallas unsuitability lawyers to maximize your chances for a full financial recovery. Shepherd Smith Edwards and Kantas has been representing Texas investors, as well as investors all over the United States for over 30 years. More than 90% of our clients have secured full or partial financial recovery through our skilled efforts and dedication.

Contact Our Dallas Unsuitability Law Firm:

Call (214) 613-5306 or (800) 259-9010 or fill out this form to schedule your free, initial case assessment.

Our Dallas Securities Law Office

Founders Square
900 Jackson St #440-A
Dallas, TX 75202