Houston Unsuitability Loss Attorneys

Shepherd Smith Edwards and Kantas Houston Unsuitability Loss Attorneys Are Representing Texas Investors Against The Brokers That Gave Them Poor Investing Advice

Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing Texas investors who have suffered losses because their broker engaged in unsuitability. This is one of the most common legal grounds noted in investment loss recovery claims that are made against broker-dealers and their registered representatives. Contact our Houston, Tx unsuitability loss lawyers so that we can help you determine whether you have grounds for a case.

Broker-dealers and their registered representatives are required to conduct the proper due diligence to ensure the suitability of any recommendation that they make, and, also, to check that whatever financial product or asset they are suggesting is a viable investment and not fraudulent.

What Is Unsuitability Involving Broker Misconduct or Negligence?

According to FINRA Rule 2111. Suitability, financial advisors must have reasonable grounds for choosing to recommend any investment, transaction, investing strategy, or portfolio structure to an investor. The recommendation must be appropriate given the investor’s profile, risk tolerance level, experience, age, investing goals, liquidity needs, tax status, existing portfolio, investment time horizon, financial situation, and other pertinent information the customer may have disclosed to their broker.

If the customer is an institutional investor, then the financial advisor who makes the recommendation needs to have reasonable grounds for thinking this client is capable of evaluating the investment risks involved.

There are three kinds of suitability analyses for broker-dealers to conduct:

Reasonable-basis suitability: This requires conducting research to assess there is suitability for at least some investors. Is the company offering the investment a legitimate entity? What is its financial situation? Is the company under investigation or are any of its executives facing fraud allegations? Is the recommendation being made suitable for retail investors, accredited investors, high-net-worth investors, or institutional investors?

Customer-specific suitability: Once a reasonable basis for suitability is determined, the broker-dealer must conduct a suitability analysis that is specific to each customer.

Quantitative suitability: This type of analysis deals with the overall effect of a series of transactions or an investing strategy on the portfolio of the customer. For instance, is there a cumulative risk for employing a high-yield trading strategy for this particular investor? Other examples of what could be part of a quantitative suitability analysis might include looking for overconcentration, a high turnover investing rate, or a poor cost-equity ratio.

An unsuitability allegation doesn’t exist in a vacuum. Excessive trading, selling away, making misrepresentations and omissions, and best interest violations might all fall under an unsuitability claim if these inappropriate actions lead to a customer sustaining serious portfolio losses.

What Should You Do If You Are A Texas Investor Who Was The Victim of Unsuitability By Your Broker

If you contact our Houston unsuitability investments lawyers, we can help you explore your legal options. Throughout Texas, we have been representing investors from all walks of life and with all levels of investing experience for more than 30 years. This includes retail investors, conservative retirees, elderly investors, accredited investors, high-net-worth investors, ultra-high-net-worth investors, institutional investors, and more.

It is important that you don’t try to resolve your case directly with your broker-dealer or their financial advisor. Brokerage firms are notorious for denying legitimate claims, even blaming the investor for mistakes that their stockbroker caused. Not hiring seasoned Texas unsuitability attorneys to protect your legal rights and fight for you could undermine your chances for financial recovery.

At Shepherd Smith Edwards and Kantas our Houston Unsuitability Loss Attorneys know how to determine the cause of your losses, including whether unsuitability and other kinds of broker misconduct or negligence were involved. We have represented investors in arbitration, negotiation, mediation, and litigation. More than 90% of our clients have received full or partial financial recovery because of our skilled and collaborative efforts. Over the years, this has resulted in thousands of investors collectively recouping many millions of dollars from liable broker-dealers and investment advisers.

How To Reach Us To Discuss Your Texas Unsuitability Case:

Call (936) 251-0033 or (800) 259-9010 or fill out this form.

Our Houston Securities Law Office:

1010 Lamar St #900
Houston, TX 77002