Depending on the nature of the business investment, you have rights as an investor to:
(1) Ask for and receive information from a firm about the work history and background of the person handling your account, as well as information about the firm itself.
(2) Receive complete information about the risks, obligations and costs of any investment before investing.
(3) Receive recommendations consistent with your financial needs and investment objectives.
(4) Receive a copy of all completed account forms and agreements.
(5) Receive account statements that are accurate and understandable.
(6) Understand the terms and conditions of transactions you undertake.
(7) Access your funds in a timely manner and receive information about restrictions or limitations on access.
(8) Discuss account problems with the branch manager or compliance department of the firm and to receive prompt attention and fair consideration of your concerns.
(9) Receive complete information about commissions, sales charges, maintenance or service charges, transaction or redemption fees, and penalties.
Contact your state or provincial securities agency for any the following reasons: to verify the employment and disciplinary history of a securities salesperson and the salesperson’s firm, to find out if an investment is permitted to be sold and to file complaints.
The most common scenarios of broker-client conflicts include misrepresentation and suitability. Misrepresentation concerns the falsification or omission of facts in regard to a certain investment. An example of this is when an investor is given a specific set of facts by a broker and then finds claims to be false or absent. Suitability occurs when the broker puts the money of the client into an unsuitable investment. Cases like these are seen when a broker advises a low-risk tolerant client to finance a high-risk investment. Did you invest in a business and become a shareholder and now have a shareholder dispute?
If you believe that you have a serious claim against your investment broker, you want to consider the measures you will be willing to take. Do you have a FINRA related claim? As many financial advisors are under contracts with a specific code of ethics, you may consider filing a dispute with their organization. In addition, you could contact the office of your state security commission in charge of client complaints.
If you feel that your investment broker has violated any of the previously mentioned rights or a valid complaint against your financial advisor, our attorneys may provide assistance regarding your specific case. You may contact our office at 713-572-4900.
