Posts em Destaque

Investidores com Linha de Crédito "Blown-Out" e Contas de Margem "Blown-Out": Como você recupera suas perdas de investimento?

Se você está lendo este artigo, estamos supondo que teve uma experiência ruim recentemente, seja em uma linha de crédito garantida por títulos ("SBL") ou em uma conta margem que sofreu chamadas de margem e foi liquidada sem aviso prévio, fazendo com que você percebesse perdas. Normalmente, os investidores com chamadas de margem recebem 3 a 5 dias para atendê-los; e se isso acontecesse, o valor dos títulos em sua conta poderia ter aumentado dentro desse período e a firma poderia ter apagado a chamada de margem e poderia não ter liquidado sua conta. Se você for um investidor que tenha experimentado chamadas de margem no passado, e esta é sua única reclamação então, não leia mais porque quando você assinou o acordo de conta com a corretora com a qual você escolheu fazer negócios, você provavelmente lhe deu o direito de liquidar todos os títulos em sua conta a qualquer momento sem aviso prévio. Por outro lado, se você é um investidor com pouca experiência ou com uma condição financeira modesta que foi convencido a abrir uma linha de crédito de títulos sem ser avisado sobre a verdadeira natureza, mecânica e/ou riscos de abrir tal conta, então você deve nos ligar agora! Alternativamente, se você é um investidor que precisava retirar dinheiro para uma casa ou para pagar seus impostos ou educação de seus filhos, mas foi convencido a manter uma carteira de ações e/ou junk bonds de risco ou concentrada em uma conta garantida por uma linha de crédito ou uma conta margem, então provavelmente podemos ajudá-lo a recuperar suas perdas de investimento também. A chave para uma recuperação bem sucedida de sua perda de investimento é não se concentrar na liquidação dos títulos em sua conta pela corretora sem aviso prévio. Em vez disso, o foco em seu caso deve estar no que lhe foi dito e se a recomendação foi adequada para você antes de abrir a conta e sofrer a liquidação.

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Regulamento de melhor interesse (Reg. BI): Melhor, mas não o Melhor!

Finalmente, dez anos após a Reforma de Dodd Frank Wall Street e a Lei de Proteção ao Consumidor de 2010 (Dodd-Frank) ter sido promulgada para provocar mudanças radicais no setor de valores mobiliários, a melhor regulamentação que a Comissão de Valores Mobiliários dos Estados Unidos ("SEC") poderia aprovar, a SEC Regulation Best Interest, é agora a lei que rege os corretores de valores mobiliários que dão consultoria de investimento aos clientes de varejo. Embora a SEC tivesse autoridade para impor um padrão uniforme e expansivo de "Dever Fiduciário" em todo o país aos corretores - corretores e consultores de investimento, ela cedeu às exigências do setor de corretagem de ações e decretou a Regulação de Melhor Interesse ("Reg. BI"), que é melhor que a Autoridade Reguladora do Setor Financeiro ("FINRA") "Regra de Adequação", mas não a melhor que poderia ter sido feita para proteger os investidores. No mês passado, a FINRA emendou sua Regra de Adequação para estar em conformidade com o SEC Reg. BI e deixou claro que os corretores agora uniformemente têm deveres relacionados à divulgação, cuidado, conflitos e conformidade, que são equivalentes ao padrão da lei comum "dever fiduciário" ao fazer recomendações aos clientes de varejo. Veja, FINRA Regulatory Notice 20-18. 1

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FINRA Arbitragem: O que esperar e por que você deve escolher nosso escritório de advocacia

Se você está lendo este artigo, provavelmente é um investidor que perdeu uma quantia substancial de dinheiro, pesquisou no Google "FINRA Arbitration Lawyer", clicou em vários sites de advogados, e talvez até falou com um chamado "Securities Arbitration Lawyer" que lhe disse após um telefonema de cinco minutos que "você tem um grande caso"; "você precisa assinar um contrato de retenção com base em 'taxa de contingência'"; e "você precisa agir agora porque o estatuto de limitações vai funcionar".

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Introdução de um corretor de bolsa aos exames e investigações da FINRA

Os corretores e consultores financeiros muitas vezes não entendem quais são suas responsabilidades e obrigações e o que pode resultar de um exame ou investigação da Autoridade Reguladora do Setor Financeiro (FINRA). Muitos corretores nem mesmo sabem o papel que a FINRA desempenha dentro do setor. Isto pode ser devido ao fato de que a FINRA, uma organização auto-reguladora, não é uma entidade governamental e não pode condenar profissionais financeiros a penas de prisão por violação das regras e regulamentos do setor. No entanto, todos os corretores-empresários que fazem negócios com membros do público devem se registrar na FINRA. Na qualidade de membros registrados, os corretores e os corretores que trabalham para eles concordaram em cumprir as regras e regulamentos do setor, que incluem as regras da FINRA.

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Entendendo a Regra FINRA 2111: Adequação

Como investidor, você já deve ter ouvido falar da regra FINRA 2111, também conhecida como a regra de adequação. Mas o que é exatamente a FINRA 2111? E como ela afeta você e seus investimentos? Quando você contrata uma corretora ou consultor financeiro para fazer recomendações de transação ou estratégia de investimento, você espera que eles o façam de uma maneira adequada a você e a suas circunstâncias particulares. Infelizmente, no entanto, nem sempre é este o caso. Se você tiver sofrido perdas financeiras como resultado de estratégias de investimento inadequadas e recomendações de seu consultor financeiro, contate hoje o advogado Robert Wayne Pearce da área de valores mobiliários. Uma visão geral da regra FINRA 2111 Adequação ao investimento é um conceito abrangente que descreve se um investimento individual é adequado para um cliente após consideração das características particulares desse cliente. A regra de adequação exige que os consultores financeiros tenham uma "base razoável" para acreditar que uma transação ou estratégia de investimento recomendada é adequada para seu cliente. Um consultor financeiro determina a adequação de uma transação ou estratégia de investimento em particular através do aprendizado sobre o perfil de investimento de seu cliente. Especialistas interpretam a regra FINRA 2111 como exigindo que os assessores financeiros façam recomendações que são do melhor interesse de seus clientes. FINRA descreve situações envolvendo assessores financeiros que violam a regra da adequação colocando seus interesses acima dos interesses de seu cliente, inclusive: Assessores financeiros que recomendam que os clientes usem margem para comprar um número maior de títulos para aumentar as comissões; Corretores que recomendam títulos inadequados com altas comissões devido à pressão de sua firma para vender os títulos; ou Um corretor que recomenda um produto sobre outro com o objetivo de ganhar mais comissões. Recomendações de investimento inadequadas levam a milhares de dólares em perdas para os investidores a cada ano com base em consultores financeiros que recomendam produtos que são ilíquidos, especulativos e de alto risco. Se isto aconteceu com você, entre em contato hoje mesmo com um advogado experiente em perdas de investimento para dar início ao seu caso. Obrigações de adequação Impostas pela regra FINRA 2111 A regra 2111 consiste em três obrigações primárias: adequação razoável, adequação específica ao cliente e adequação quantitativa. Base Razoável Adequabilidade Base Razoável Adequabilidade exige que um consultor financeiro tenha uma base razoável, baseada em diligência razoável, para acreditar que uma recomendação é adequada para o público em geral. Esta diligência razoável deve fornecer ao consultor financeiro um entendimento básico dos riscos e recompensas associados à transação ou estratégia de investimento recomendada. Um corretor deve compreender os riscos e recompensas associados a um determinado investimento. Não o fazer e recomendar o investimento a um cliente de qualquer forma pode resultar em acusações de deturpar o investimento. Se um corretor não cumprir qualquer uma destas exigências, a obrigação de adequação da base razoável não será cumprida. Adequação específica ao cliente A adequação específica ao cliente envolve considerar detalhes específicos sobre um cliente individual para determinar se uma transação ou estratégia de investimento é adequada. As características de um cliente que devem ser consideradas durante uma análise de aptidão incluem: Situação de emprego, idade, situação financeira, situação fiscal, experiência de investimento, metas de investimento, tolerância ao risco, necessidades de liquidez e horizonte de tempo de investimento. O consultor financeiro deve avaliar estas características para determinar se o investimento ou a estratégia é adequada para aquele cliente em particular. Adequação Quantitativa O elemento de adequação quantitativa avalia o volume de negócios realizados por um consultor financeiro. Para uma análise de adequação quantitativa, as transações feitas na conta de investimento de um cliente são vistas no agregado. A questão é se os investimentos recomendados se qualificam como uma estratégia geral adequada, e não se cada transação individual foi adequada. A obrigação de adequação quantitativa procura evitar que os consultores financeiros façam transações excessivas na conta de um cliente com o único objetivo de gerar taxas de comissão. Contate um Advogado de Perdas em Investimentos Hoje os casos de perdas em investimentos FINRA 2111 podem ser particularmente complexos. É por isso que é importante ter um advogado experiente em perdas de investimento em seu canto. Desde 1980, os advogados do The Law Offices of Robert Wayne Pearce, P.A., têm representado inúmeros investidores enquanto lutam por seus direitos. Se você for vítima de negligência ou má conduta de corretor, queremos ajudar. Recuperamos mais de US$ 140 milhões para clientes bem merecedores e lutaremos para obter os resultados que você também merece. Entre em contato com nossa equipe hoje para a avaliação gratuita de seu caso e veja o que podemos fazer por você.

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Regra FINRA 2010: Normas de Honra Comercial e Princípios de Comércio

A Regra FINRA 2010 estabelece que os membros da FINRA devem observar "altos padrões de honra comercial e princípios justos e equitativos de comércio" na condução de seus negócios. Se você acha que esta regra parece ampla, é porque ela é. E infelizmente, os membros da FINRA nem sempre estão à altura destes altos padrões prescritos na Regra FINRA 2010. Então, o que você faz se seu corretor ou consultor financeiro não cumpriu com suas obrigações nos termos da FINRA 2010? A má conduta do corretor custa aos investidores milhões de dólares em perdas de investimento a cada ano. Tais perdas são freqüentemente o resultado de fraude, deturpação ou supervisão negligente de sua conta. Embora essa má conduta possa resultar em graves ramificações financeiras para você, felizmente existem caminhos para responsabilizar esses malfeitores. Se você sofreu perdas que você acredita serem resultado da falha de seu corretor em manter os altos padrões de honra comercial e princípios de equidade comercial, entre em contato com os escritórios de advocacia de Robert Wayne Pearce, P.A. Discuta seu caso com um advogado experiente em perdas de investimento o mais rápido possível para ver como você pode ser capaz de se recuperar. Visão geral de outras notáveis Regras FINRA Tipicamente, as Regras FINRA descrevem a conduta específica proibida pela própria regra. Por exemplo, as regras FINRA: A Regra FINRA 1122 proíbe os membros da FINRA e outros indivíduos de apresentar informações de filiação ou registro junto à FINRA que contenham informações incompletas ou imprecisas; a Regra FINRA 2111 exige que os corretores recomendem apenas investimentos ou estratégias de investimento adequadas ao cliente; e a Regra FINRA 5270 proíbe a execução antecipada de transações em bloco. Então, onde a Regra FINRA 2010 entra em jogo? Muitas vezes, os investidores utilizam a Regra 2010 para tratar de conduta imprópria não descrita em outras regras FINRA. A Regra 2010 opera como uma disposição para proteger os investidores contra negligência financeira e outras práticas antiéticas por parte de consultores e instituições financeiras. O que a Regra 2010 Proíbe? A Regra 2010 sanciona os corretores por má fé ou má conduta "empresarial" antiética. Receber uma sanção sob a Regra 2010 não significa necessariamente que o corretor violou a lei, mesmo que uma violação da lei de títulos por si só apóie a conclusão de que um corretor violou a Regra 2010. Conduta considerada antiética ou imoral, embora não necessariamente proibida por lei, autoriza a disciplina sob a Regra 2010. A Regra FINRA 2010 exige que a suposta má conduta seja relacionada aos negócios para se qualificar para a disciplina sob esta regra. Em uma ação disciplinar FINRA de 2019, um Painel de Audiência FINRA explicou que a relação entre as ações antiéticas do membro FINRA e a conduta de seus negócios de valores mobiliários não tem que estar intimamente ligada. Pelo contrário, o Painel implicou que a Regra 2010 se estende a qualquer má conduta que "reflita sobre a capacidade da pessoa associada de cumprir as exigências regulamentares do negócio de valores mobiliários e de cumprir [seus] deveres fiduciários no manuseio do dinheiro de outras pessoas". Exemplos de violações da Regra FINRA 2010 Em última análise, cada caso alegando violação da Regra 2010 requer uma análise individual para determinar se a má conduta equivale a uma violação da regra. Para determinar se a regra foi violada, é necessária uma avaliação tanto da totalidade das circunstâncias quanto do contexto da má conduta. Lembre-se, uma violação da Regra 2010 ocorre mesmo em circunstâncias em que um corretor não comete uma violação da lei estadual ou federal. As ações consideradas uma violação da Regra 2010 incluem: Apropriação indevida de fundos de clientes ou de um empregador; Compartilhar as informações confidenciais de clientes sem aprovação; Falsificar assinaturas; Fazer alterações em documentos financeiros importantes; Solicitar doações para benefício pessoal ou outros usos não autorizados; Apresentar informações financeiras falsas aos clientes; e Recusar-se a pagar honorários advocatícios e outras despesas após iniciar um litígio contra um cliente. As alegações da Regra 2010 surgem freqüentemente em conjunto com alegações de que um corretor violou outra Regra FINRA. Contate um Advogado de Perda de Investimento para responder suas perguntas sobre a Regra 2010 Argumivelmente no centro da regulamentação de valores mobiliários é FINRA 2010. Sem tal regra, os membros da FINRA não teriam nenhuma obrigação abrangente de conduzir seus negócios com padrões tão altos de honra e integridade. É claro que, mesmo com a Regra 2010 em vigor, os membros da FINRA inevitavelmente ficarão aquém desses padrões. Quando o fizerem, saiba que você pode recorrer aos escritórios de advocacia de Robert Wayne Pearce, P.A. Com mais de 40 anos de experiência representando investidores e responsabilizando seus corretores e consultores financeiros por má conduta, você pode estar confiante de que nossa equipe tem o conhecimento e os recursos necessários para lutar por você. O advogado Robert Pearce tem um forte histórico de sucesso, recuperando fundos para mais de 99% de seus clientes investidores. Para discutir seu caso e iniciar o processo de compensação, entre em contato conosco hoje para uma avaliação gratuita do caso.

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Compra e Venda Excessiva de Títulos para Gerar Comissões é chamada de "Churning" - Está Acontecendo com Você?

Muitas pessoas perguntam com freqüência: A agitação é ilegal? A resposta é sim. Os regulamentos SEC e as regras FINRA proíbem a prática de fazer compras ou vendas excessivas de títulos em contas de investidores com o objetivo principal de gerar comissões, conhecidas como churrasco. Apesar da ilegalidade da churrascagem, FINRA apresentou 190 ações de arbitragem para o ano de 2020 até o final de dezembro contra corretores acusados da prática. Se você sofreu perdas em sua conta de investimento como resultado de negociação excessiva, entre em contato com um advogado de fraude de churning para determinar se você tem o direito de recuperar a compensação. O que é Churning in Finance? A churning, também conhecida como negociação excessiva, assume um novo significado na indústria financeira que não tem nada a ver com manteiga. Negociações excessivas ocorrem quando um corretor faz múltiplas negociações na conta de investimento de um cliente com o objetivo principal de gerar altas comissões. A quebra muitas vezes resulta em perdas significativas para os investidores. O Regulamento da SEC Best Interest, ou Reg BI, estabelece um padrão de conduta para os corretores e seus funcionários quando recomendam investimentos a clientes de varejo. O Reg BI exige que os corretores atuem no melhor interesse do cliente e não coloquem seus próprios interesses à frente dos do investidor. O Churning quase nunca é do melhor interesse do investidor - mesmo aqueles com estratégias comerciais agressivas. Sinais de que seu assessor está sendo pressionado em sua conta de investimento A mobilização de ações leva a perdas substanciais para o investidor, especialmente em situações em que elas duram um longo período de tempo. Muitas vezes, os investidores não reconhecem os indicadores de que seu corretor cometeu o crime de negociação excessiva até que seja tarde demais. Há uma série de sinais de cautela a serem observados quando você teme que seu consultor financeiro esteja negociando excessivamente em sua conta. Negociações não autorizadas O comércio não autorizado ocorre quando um corretor negocia títulos em sua conta de investimento sem receber autorização prévia. Se você tiver uma conta de investimento discricionária, seu consultor financeiro tem autorização para fazer negócios em sua conta sem buscar sua aprovação para cada transação; entretanto, seu corretor ainda está vinculado ao padrão de melhor interesse. Negociações excessivas podem ser mais difíceis de serem detectadas com uma conta discricionária. Numerosas negociações não autorizadas que aparecem no extrato de sua conta são motivo de preocupação. Para reconhecer essas transações, você deve rever seu extrato de conta mensalmente e verificar as informações fornecidas. Se você observar negociações não autorizadas em seu extrato de conta, notifique imediatamente seu corretor e corretora de corretagem. Volume de negócios anormalmente alto Um alto volume de atividade comercial em um curto período de tempo pode significar agitação, especialmente para investidores que buscam uma estratégia de investimento conservadora. Preste atenção especial às transações que envolvem a compra e venda dos mesmos títulos, repetidamente. O advogado Robert Pearce tem mais de 40 anos de experiência representando clientes cuja má conduta de corretores causou perdas financeiras. A vasta experiência do Sr. Pearce lhe permite reconhecer imediatamente indicadores de agitação e provar a quantidade de danos sofridos como resultado da má conduta de seu corretor. Taxas de comissão excessivas Taxas de comissão anormalmente altas que aparecem no extrato de sua conta é outro indício de negociação excessiva. Se as taxas de comissão saltarem significativamente de um mês para o outro, ou se um segmento de sua carteira de investimentos gerar consistentemente comissões mais altas do que qualquer outro segmento, há uma chance de que seu corretor esteja agitando sua conta. Os extratos de conta normalmente não incluem os valores das taxas cobradas para cada transação individual. Portanto, não hesite em entrar em contato com seu corretor-dealer para solicitar uma explicação sobre as comissões cobradas em sua conta. Se você achar que estão sendo cobradas taxas excessivas em suas contas de investimento, entre em contato com os escritórios de advocacia de Robert Wayne Pearce, P.A., para discutir suas opções. Entre em contato hoje com nosso escritório para uma Consulta Gratuita A cobrança de comissões no setor financeiro pode resultar em sanções monetárias e até mesmo a desqualificação do setor financeiro em casos extremos. A prática envolve a manipulação e o engano dos investidores que confiam a seus corretores para agirem no seu melhor interesse, garantindo uma punição severa. Robert Wayne Pearce já tratou de dezenas de casos de churrasco e pode fornecer uma revisão completa de seus extratos de conta para determinar se houve negociação excessiva. Além disso, os escritórios de advocacia de Robert Wayne Pearce, P.A., empregam especialistas que podem realizar uma análise de churning da atividade comercial em sua conta para estabelecer provas concretas de que a prática ocorreu. Temos a experiência, o conhecimento e o compromisso de obter os danos que você merece. Entre em contato com nosso escritório hoje para uma avaliação gratuita do caso.

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FINRA Conhece a Regra do Cliente e a Adequação ao Investimento - Como se aplica a você?

FINRA regulates the conduct of brokers in the securities industry to protect investors from suffering losses due to financial advisor misconduct. The agency formulates rules to outline the behavior expected of broker-dealers and financial advisors when dealing with their investment clients. Nevertheless, FINRA receives thousands of customer complaints every year alleging violations of FINRA Rules. FINRA Rule 2090, the Know Your Customer (KYC) rule, and FINRA Rule 2111, the suitability rule, mandate minimum knowledge requirements for brokers when making investment recommendations and commonly appear in these customer complaints.  If you suffered investment losses due to unsuitable investment recommendations, The Law Offices of Robert Wayne Pearce, P.A., can help you determine if your broker violated one of these rules. Contact our office today for a free consultation. FINRA Rule 2090: Know Your Customer Rule FINRA Rule 2090, or the Know Your Client rule, requires financial advisors to know the “essential facts concerning every customer and concerning the authority of each person acting on behalf of such customer” when opening and maintaining a client investment account. The “essential facts” described in the rule include details that are required to: Service the account effectively; Satisfy any special handling instructions for the account; Understand the authority of anyone acting on the customer’s behalf; and Comply with applicable laws, regulations, and rules. The KYC rule protects clients from investment losses by requiring their financial advisor to learn detailed information about their personal financial circumstances. The rule protects financial advisors by outlining the essential information about customers at the outset of the relationship, prior to any recommendations. Additionally, the financial adviser receives notification of any third parties authorized to act on the customer’s behalf. The Know Your Client rule acts in tandem with the suitability rule, FINRA Rule 2111. The information learned by financial advisors through the KYC requirement factors into the analysis of whether an investment recommendation is suitable.  FINRA Rule 2111: Suitability Alleged violation of investment suitability requirements resulted in 1,220 customer complaints filed with FINRA in 2020 alone, down from 1,580 complaints in 2019. The suitability rule requires financial advisors to have a “reasonable basis” to believe that a recommended transaction or investment strategy is suitable for the customer. A financial advisor determines the suitability of a transaction or investment strategy through ascertaining the customer’s investment profile. Factors involved in a suitability analysis include the customer’s: Age, Investment experience, Financial situation, Tax status, Investment goals, Investment time horizon, Liquidity needs, and Risk tolerance. Numerous cases interpret the FINRA suitability rule as requiring financial advisors to make recommendations that are in the best interest of their customers. FINRA outlines situation where financial advisors have violated the suitability rule by placing their interests above the interests of their client, including: A broker who recommends one product over another to receive larger commissions; Financial advisors who recommend that clients use margin to purchase a larger number of securities to increase commissions; and Brokers who recommend speculative securities with high commissions because of pressure from their firm to sell the securities. Any indication that a financial advisor has placed his or her interests ahead of the client’s interest can support a claim for a violation of the suitability rule. Rule 2111 consists of three primary obligations: (1) reasonable basis suitability, (2) customer-specific suitability, and (3) quantitative suitability. Reasonable Basis Suitability Reasonable basis suitability requires a financial advisor to have a reasonable basis to believe, based on reasonable diligence, that a recommendation is suitable for the public at large. A financial advisor’s reasonable diligence should provide him or her with an understanding of risks and rewards associated with the recommended investment or strategy. A failure to comprehend the risks and rewards associated with a particular investment prior to recommending the investment to a client can result in allegations of misrepresentation or fraud. If a broker fails to perform reasonable diligence regarding either component, the financial advisor violates this obligation. Customer-Specific Suitability Customer-specific suitability involves considering the specific details about an individual customer to determine if a transaction or investment strategy is suitable. The financial advisor reviews the details outlined above to determine the suitability of a particular transaction or strategy for each customer. Quantitative Suitability The quantitative suitability element requires financial advisors to recommend transactions that are suitable when viewed as a whole, not only when viewed in isolation. This element aims to prevent financial advisors from making excessive trades in a client’s account solely for the purpose of generating commission fees. Factors such as turnover rate, cost-equity ratio, and use of in-and-out trading indicate that the quantitative suitability obligation was violated. What Constitutes “Reasonable Diligence”  FINRA’s suitability rule requires brokers to exercise “reasonable diligence” in attempting to obtain customer-specific information. The reasonableness of a financial advisor’s effort to obtain such information will depend on the facts and circumstances of each investment relationship. A financial advisor typically relies on the responses provided by the customer in compiling information relevant to the customer’s investment profile. Some situations may prevent a broker from relying exclusively on a customer’s responses, including times when: A financial advisor poses misleading or confusing questions to a degree that the information-gathering process is tainted; The customer exhibits clear signs of diminished capacity; or Red flags exist that indicate the information may be inaccurate. Additionally, the suitability rule requires brokers to consider any other information provided by the customer in connection with investment recommendations.  Hiring an Investment Loss Attorney Violation of FINRA Rules 2090 and 2111 result in significant financial losses for investors every year. If you suffered losses because of unsuitable investment recommendations, you have the right to seek compensation from the parties responsible for your losses.  Cases against brokers and registered investment advisors can be complex for attorneys without experience in securities law.  Robert Wayne Pearce has over 40 years of experience representing investors in disputes against financial advisors and broker dealers. Mr. Pearce has tried, arbitrated, and mediated hundreds of investment-related disputes involving complex securities and FINRA rule violations. In fact, Mr. Pearce serves...

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O que faz um Advogado de Valores Mobiliários

The term “securities” encompasses several forms of financial instruments that hold some type of monetary value. Securities exist in the form of: Stocks, Bonds, Options, Notes, Certificates of interest, Collateral trust certificates, Transferable shares, and Investment contracts. Consumers and financial professionals trade securities in financial markets in an attempt to generate profits.  The law regulating securities and financial industry professionals exists to protect investors and shareholders from misconduct and enforce compliance with federal and state securities laws. Securities laws evolve rapidly to keep pace with developments in financial markets. This is where securities lawyers come in. What Does a Securities Lawyer Do? A securities lawyer specializes in securities laws and regulations that apply to investors, brokers, and financial advisors. Securities lawyers represent investors claiming losses as a result of misconduct or fraud, as well as brokers and financial advisors accused of misconduct by their clients or their employers. Investment Losses? Let’s talk. or, give us a ring at 561-338-0037. Attorney Robert Pearce has over 40 years of experience as a securities lawyer and has been named a Florida Super Lawyer through Thomson Reuters for Securities Litigation. The Super Lawyer title is awarded only to those in the top 5% in their area of law. Robert’s extensive knowledge of securities law and experience representing investors and financial professionals equip him to obtain the best results for each and every client. When Should an Investor Hire a Securities Lawyer? If you are an investor who suffered losses due to broker misconduct, you have the right to seek reimbursement from the parties responsible. Broker misconduct exists in multiple forms, including: Breach of fiduciary duty; Failure to disclose a conflict of interest; Churning, also known as excessive trading; Lack of diversification; Failure to adequately supervise; Misrepresentation; Omission of material facts; Unsuitable investment recommendations; Unauthorized trading; and  Misappropriating client funds.  While some forms of broker misconduct are easy to recognize, others are not. A financial advisor who stole funds out of your account and transferred them to a personal account clearly misappropriated your funds and committed misconduct. It’s more difficult to prove that a financial advisor recommended unsuitable investments, however, because the suitability of an investment depends on a number of different factors.  If you suffered investment losses and believe it was a result of broker misconduct, contact a securities lawyer today to evaluate your case.  The FINRA Arbitration Process FINRA is a self-governing regulatory agency charged with ensuring its members comply with the ethical rules of the financial industry and investigating investor complaints alleging misconduct and fraud. FINRA can impose fines and restrictions on brokers when necessary. Many investment contracts between brokers and investors include an arbitration provision that requires investors to file claims with FINRA. The FINRA arbitration process involves several steps, including: Filing a statement of claim; Selecting arbitrators; Participating in pre-hearing conferences and discovery; and Attending the arbitration hearing. Robert Pearce has represented hundreds of clients in the FINRA arbitration process. He is committed to obtaining the best results for his client in every case.  When Should a Financial Professional Hire a Securities Lawyer?  Brokers and investment advisors facing disputes with their brokerage firms or regulators should consider seeking the advice of a securities lawyer. We have represented investment professionals in investigations and administrative proceedings initiated by the: United States Securities and Exchange Commission (SEC); Financial Industry Regulatory Authority (FINRA); United States Commodities Futures Trading Commission (CFTC); and Certified Financial Planner Board of Standards (CFP Board). Regulatory judgments against financial professionals can result in serious consequences, including being barred from the financial industry. You should seek the counsel of a securities lawyer as soon as possible after being contacted by any securities regulatory agency.  The securities lawyers at The Law Offices of Robert Wayne Pearce, P.A., represent brokers and advisors in employment agreement disputes and in employment disputes involving discrimination. Additionally, our securities attorneys represent brokers and advisors against their employers in the event of Form U-5 Abuse, which occurs when an employer uses a Form U-5 to blackmail a former employee.  Contact The Law Offices of Robert Wayne Pearce, P.A., Today Robert has over 40 years of experience representing clients in securities disputes and has won multiple million-dollar awards on their behalf. We operate on a contingency fee basis. That means you have to pay for your legal representation only in the event of a settlement or award. When you suffer losses through no fault of your own, having an experienced securities lawyer in your corner can increase your chances of recovery. Contact our office today for a free case review.

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O que é Abuso Financeiro de Idosos: Os sinais que você deve estar atento

Growing up, one of the lessons we’re all taught is to respect our elders. Unfortunately, many people fail to take this to heart. Unscrupulous family members and other bad actors often take advantage of senior citizens, especially when it comes to their finances. According to one study, financial elder abuse accounted for roughly 18% of elder abuse reports. However, the actual percentage is likely much higher; only about 1 in 44 financial abuse cases is ever reported. Because many elderly people live off of their investments, the consequences of this type of abuse can be particularly extreme. The best way to protect our elderly family members is to know the signs of financial elder abuse. By recognizing the abuse as soon as possible, we can hopefully prevent irreversible damage to their finances. What Is Elder Financial Abuse? Elder financial abuse is theft or mismanagement of an elderly person’s assets. These may include real estate, bank accounts, or other property that belongs to the elderly person. Because the abuser is often a close family member, or trusted financial advisor, elder financial abuse frequently goes unnoticed. Investment Losses? Let’s talk. or, give us a ring at 561-338-0037. Sign #1: Unusual Bank Account Activity As they get older, many people grant financial powers of attorney to their spouse or adult children or trusted financial advisors. While this is perfectly normal, it opens up the possibility that the designated person may abuse that power. If you suspect elder financial abuse, pay close attention to the elderly person’s bank accounts and investments in their brokerage accounts. Withdrawals, transfers, or other suspicious activity like new or inactive accounts suddenly becoming active are red flags. The elderly person may be making these transfers themself, but it’s always good to be sure, since it could be for the wrong reasons (like the internet scams discussed below). Keep an eye on their investments as well. An elderly person’s portfolio is typically structured to provide a livable income off interest alone through low-risk investments. Keep an eye out for restructuring of investments to riskier funds or unexplained “cash outs.” Sign #2: Suspicious Internet Activity Over the past few years, there has been a drastic increase in the number of online scams targeting elderly people. Because elderly people are more trusting and less able to distinguish a scam from a legitimate venture, scammers frequently target them with fake tech support calls and the like. One of the most common online scams involves the scammer posing as a lover, friend, or family member online. After contacting the elderly victim, the scammer then requests money for plane tickets or some kind of emergency. This sign may be impossible to notice without speaking to the potential victim. Be wary if they mention someone new they met online or if you notice suspicious financial activity initiated by the victim. Sign #3: Missing Food or Unpaid Bills Ordinarily, caregivers or family members will make sure that an eldery person’s home is stocked with food and that bills are paid on time. Especially in a world with automatic bill payments, aging parents shouldn’t have to worry about paying their bills on time. A lack of food in the house and unpaid bills are indicators that that money is going elsewhere. Sign #4: Frequent Requests for Money by Someone Close to the Victim If someone makes frequent demands for money, that could be an indicator of financial exploitation. Anyone from neighbors to adult children may try to make frequent requests for money because they know the victim may have a poor memory or may have difficulty saying no.  Keep in mind that elder financial abuse like this is often subtle. Demands may not always be for large amounts of cash; this sign also includes polite requests for small amounts here and there. Over time, however, those “small amounts” can become exploitative. Sign #5: Payment for Unnecessary Services Door-to-door salesmen and “cold callers” may try to a upsell your elderly family member on services they don’t want or need. One common example of door-to-door sales abuse is roof repair or landscaping work. Cold callers barrage elderly at home with the next best investment in gold, silver, diamonds, and the next supposed Apple, Amazon, or Nextflix investment opportunity  to get into before its too late! These scams can take many different forms and may be difficult to spot. Sign #6: Threats or Coercion It may be difficult to imagine, but people may threaten their elderly family members to obtain money. These threats usually do not involve force, but rather things like, “I will put you in a home” or “I will stop visiting you.” If you don’t buy this stock, I’ll never call you again with any investment opportunities.  The abuser may also instruct the victim not to tell anyone what is happening. As a result, you’ll often have to pay close attention to spot this sign of elder financial abuse. Watch for a change in the elderly person’s demeanor or mood, especially around a suspected abuser.  What to Do If You Suspect Elder Financial Abuse If you suspect your loved one is the victim of elder financial abuse, there are a couple things you can do. If there is a health emergency, call 911 immediately; calling state adult protective services may also be appropriate in some circumstances. In most cases, your next step should be contacting a financial elder abuse attorney. They can provide legal advice and support to help stop the abuse and may be able to help the victim recover lost assets. Elder Financial Abuse and Financial Fraud Attorneys At the Law Offices of Robert Wayne Pearce, P.A., we have the experience and resources necessary to properly handle your elder financial abuse claim. We’ve helped hundreds of clients with securities and investment fraud of all kinds and are prepared to give you the professional, dedicated representation you need. Contact us today through our website or by phone at 800-732-2889 for a free consultation.

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Fraude com títulos: O que você deve saber como investidor

Investors trust their financial advisors to make important and wise decisions regarding the management of their investment portfolio. Financial advisors hold a position of trust with their clients, and clients expect their advisor to act with the client’s goals in mind. Unfortunately, advisors frequently violate the trust of their clients by committing various forms of securities fraud. It is important to note that suffering losses on your investments, by itself, is not a form of securities fraud. Securities fraud involves the deception of investors or the manipulation of financial markets through illegal methods. If you suffered investment losses but don’t know if you have a claim for securities fraud, our securities fraud lawyers at The Law Offices of Robert Wayne Pearce, P.A., are ready to help. Contact us today to get started on your case. What Is Securities Fraud? Securities fraud, also known as investment fraud and stock fraud, is the deception of investors or the manipulation of financial markets through illegal methods. Investors who suffer losses as a result of securities fraud can seek to recover their losses. Investment Losses? Let’s talk. or, give us a ring at 561-338-0037. Common Forms of Securities Fraud Securities fraud occurs in multiple different ways, making it even more difficult to recognize. Victims of securities fraud often suffer steep losses as a result of the fraud. Fortunately, victims of securities fraud can seek to recover their losses. So, what is securities fraud? Below are some of the most common forms of securities fraud.  Misrepresentations and Misleading Statements Misrepresentation is the most common type of securities fraud. It involves a false statement about an investment in a company; for example, a company that supposedly has earnings, a revolutionary product, or multi-million dollar contract when it has none of those assets. Misleading statements arise by omission; such as, using the same examples, when the financial advisor fails to tell you the earnings surprise was a one time past event, the revolutionary product can’t be patented, or the multi-million dollar contract is with another company about to file bankruptcy. Undoubtedly, those missing facts would have made all the difference to you in making your investment decision. The fraudster doesn’t care, he/she lies or misleads you to just get you to part with your money so he/she makes a commission. If you relied upon that intentionally false statement or misleading statement and made that investment, you have the right to claim securities fraud under federal and state statutes as well as ordinary common law fraud. But the securities fraud statutes usually have statutory remedies, including, prejudgment interest on the full purchase price from the date of purchase and attorney fees, to fully compensate you for your loss. The only problem with securities fraud statutes is they generally come with short statutes of limitation and so, you need to act fast and file suit quickly to take advantage of them. Ponzi-Like Schemes Ponzi schemes involve promises of high returns with little risk for investors, a staple of many forms of securities fraud. However, instead of issuing returns to investors out of profits, the funds of new investors are paid to early investors. Thus, Ponzi scheme victims receive guarantees of returns regardless of market conditions.  Ponzi schemes fall apart once there are no new investors providing funds. Companies operating Ponzi schemes focus the majority of their efforts into advertising to new investors to keep the scheme afloat.  Well-known financier Bernie Madoff was convicted of running the largest Ponzi scheme in history after evidence showed that Madoff falsified trading reports to indicate clients were earning profits on investments that did not exist. Madoff received a 150-year sentence in federal prison after pleading guilty. Embezzlement Embezzlement refers to the misappropriation of assets by a person entrusted with those assets. An embezzler possesses the assets lawfully at the outset, but once the assets are used for unintended purposes, embezzlement has occurred.  For example, financial advisors placed in charge of clients’ accounts possess authority to conduct transactions in the accounts, subject to some limitations. A financial advisor who steals assets entrusted to him or her by a client commits embezzlement.  Advance Fee Schemes Advance fee schemes target all kinds of victims and are becoming more prevalent with the rise of internet scams. Con artists operating advance fee schemes require the victim to pay an “advance fee” in anticipation of receiving something—such as a service, a product, or an investment opportunity—of greater value in return. The scheme operator convinces the victim to provide the fee, then subsequently informs the victim that he or she is ineligible for whatever was offered after the fee is paid. The victim is unable to recover the fee that was paid. To avoid suffering losses due to an advance fee scheme, take precautions before conducting business with a company you have never heard of. Providing any payment amount to a person or company you are unfamiliar with is a risky practice. When in doubt, speak to an experienced securities fraud attorney to determine whether the investment opportunity is fraudulent.  Pump and Dump Fraud A pump and dump scheme, also referred to as market manipulation, occurs when a group of fraudsters post content on the internet enticing investors to purchase a stock as soon as possible.  The fraudsters claim to have insider information regarding the product that will result in a jump in the share price of the stock. The fraudsters post content in multiple forums in an attempt to entice as many new investors as possible. Once investors purchase shares of the stock, the fraudsters sell their shares, resulting in a dramatic dip in the share price. New investors, lacking awareness of any fraudulent conduct, suffer the losses.  Pump and dump schemes began primarily through cold calling. However, the internet and social media provide fraudsters a more efficient way to attempt the scheme. Insider Trading Insider trading involves the use of “non-public, material information” to buy or sell stocks. Non-public material information includes any information that could substantially impact an investor’s decision...

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FINRA Arbitragem em 2021: O Guia Completo

If you lost money in the stock market because of your broker’s bad advice or careless investment practices, would you know where to turn for help recouping your losses? Robert Wayne Pearce and his team with the Law Offices of Robert Wayne Pearce, P.A., possess a tremendous amount of experience fighting for people just like you who pledged their hard-earned money to a securities broker or investment professional who lost most or all of their nest egg.  You might have a legal case if you relied on your investment professional to grow and protect your money but lost money instead. Taking on your broker and their firm is not easy. You need a tough, accomplished, and successful FINRA arbitration attorney who knows how to win by your side. Below is a complete guide on FINRA Arbitration in 2021. In this guide, you will learn about FINRA and the steps you can take to help recover your losses. I. FINRA Overview FINRA, the acronym for Financial Industry Regulatory Authority, governs disputes between investors and brokers and disputes between brokers. In this article, we solely concentrate on how an individual private investor files a claim to recover losses against their broker or financial advisor.  We will explain how FINRA fits into the securities regulatory scheme. We will discuss how FINRA provides services designed to resolve disputes in a cost-effective manner that is quicker than a traditional court and give some insight into how FINRA‘s arbitration procedure works. Next, we will examine the pros and cons of FINRA arbitration. Lastly, we will discuss how a highly experienced lawyer who has represented numerous clients successfully at FINRA arbitration can help you recover your damages from your broker or financial advisor.  What Is FINRA? FINRA is not a government agency. Unlike the Securities and Exchange Commission (SEC), FINRA is an organization established by Congress to oversee the brokerage industry. FINRA is a self-governing body and operates independently from the U.S. government. By contrast, the SEC more broadly regulates the buying and selling of securities on various exchanges such as the New York Stock Exchange, NASDAQ, and the American Stock Exchange. The SEC approves initial public offerings and secondary offerings and can halt trading to avoid a crash if necessary.  Additionally, the SEC has law enforcement powers. Along with the FBI and the U.S. Attorneys Office, the SEC can investigate acts surrounding the buying, selling, and issuing of securities. The U.S. Attorney can pursue charges for crimes relating to the stock market, such as insider trading and wire fraud.While, the SEC has the authority to file civil lawsuits against any person or organization violating the securities statutes and the SEC’s rules. How Is FINRA Different from the SEC? FINRA has a different function than the SEC altogether. FINRA is a regulatory agency designed to promote public confidence in the brokerage industry and the financial markets as well. People will not invest if they believe they have trusted unscrupulous financial advisors to protect their economic interests. FINRA ensures that its members comply with the ethical rules of their profession, similar to a state bar for attorneys or a board of registration for medical professionals.  Congress granted FINRA authorization to investigate complaints investors make concerning misconduct, fraud, or potentially criminal behavior. As a result, FINRA can discipline its members if the agency determines that a broker violated its professional code. FINRA can assess fines, place restrictions on a broker’s authority, or expel the member from its ranks for an egregious violation. Anyone who suspects their broker or their financial advisor of wrongdoing should file a complaint with FINRA’s complaint center for investors.  You should be aware that FINRA’s rules do not restrict you from filing a complaint seeking an investigation into wrongdoing and pursuing monetary damages in arbitration.  II. FINRA Alternative Dispute Resolution FINRA provides a forum for investors to resolve their disputes with their brokers or financial advisors. In fact, FINRA boasts the largest securities dispute resolution forum in the US. FINRA offers arbitration services, as well as mediation services, as a means to avoid costly and inefficient litigation in courts. FINRA provides a fair, effective, and efficient forum to resolve broker disputes. FINRA’s goal is to settle disputes quickly and efficiently without the standard procedural and discovery requirements that bog down cases filed in courts.  How Does Arbitration Work with FINRA? Arbitration is an alternative to filing a case in civil court. Arbitration tends to be less formal and is designed to process claims more quickly than filing a lawsuit in court.  FINRA’s arbitration process involves resolving monetary disputes among brokers and investors. FINRA’s arbitrators can issue monetary judgments and have the authority to order a broker to deliver securities to you if that is a just resolution of the case.  An arbitration hearing is similar to a trial in court. The parties admit evidence and argue their side to a neutral person or panel of arbitrators who will decide the case. The arbitrator’s decision, called an award, is the judgment of the case and is final. You should know that you do not have the right to appeal the award to another arbitrator. You may have an opportunity to pursue an appeal in court under limited circumstances. However, you cannot elect to arbitrate your case and then file a complaint in court seeking a trial on the issues decided by the arbitrator.  FINRA’s arbitration forum operates under the rules set forth by the SEC. FINRA ensures that the platform serves as it should and facilitates ending disputes. No member of FINRA participates in the arbitration. FINRA merely provides the forum and enforces the rules. Arbitrators decide the cases.  The arbitrators typically need about 16 months to issue an award. This is a lot quicker than court, where cases could take years to get to trial. The parties also have the opportunity to resolve the dispute by negotiating among themselves without going to arbitration.  FINRA’s Arbitration Forum Protects Investor Confidentiality Arbitration with FINRA is often confidential. The parties...

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Lei de Valores Mobiliários em 2021: O Guia Definitivo

The law governing securities evolves constantly to keep pace with changes in the industry. Regulatory agencies like the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) F/K/A National Association of Securities Dealers (NASD) enforce various rules and regulations designed to promote fair and full disclosure of material facts related to financial markets and individual securities transactions. This guide provides a surface-level overview of the securities laws in the United States and what those laws mean for you. Important Terms in Securities Law A security is an intangible financial instrument that entitles its owner to claims of ownership on assets and earnings of the issuer or the voting power that accompanies the claims. Securities exist in the form of: Notes, Stocks, Treasury stocks, Bonds, Certificates of interest, Collateral trust certificates, Transferable shares, Investment contracts, Voting trust certificates, Certificates of deposit for a security; or A fraction, undivided interest in mineral rights. Stock markets in the United States collect trillions of dollars on investments through the securities trade.  The individuals buying or selling securities are referred to as investors. The term “retail investor” refers to an individual who typically purchases securities from a broker and, in most cases, does not purchase a large quantity of securities. The term “institutional investor,” on the other hand, often refers to a company investing large sums of money in securities.  The company buying and selling securities for investors is known as a broker-dealer. Firms like Morgan Stanley and Merrill Lynch employ brokers to serve clients by buying and selling securities on their behalf.  History of Federal Securities Law Prior to the Great Depression, the United States lacked an expansive securities regulation at the federal level. As a result, companies falsified and misrepresented financial information without fear of consequences. During the 1920s, the stock market expanded rapidly as the U.S. economy grew and stock prices reached record highs. Between August 1921 and September 1929, the Dow increased by 600%. Excitement surrounding the stock market fueled retail investors to get involved. Many retail investors purchased stocks “on margin,” meaning they only paid a small portion of the stock price and borrowed the remaining amount from a bank or broker. Despite the audacity of the claim, many believed that stock prices would continue rising forever. In early September 1929, stock prices started to decline. Not yet alarmed, many investors saw an opportunity to buy into the stock market at a lower price. The Stock Market Crash of 1929 On October 18, 1929, stock prices decreased more significantly. October 24 signaled the first day of panic among investors. Known as “Black Thursday,” a record 12,894,650 shares were traded throughout the day. On October 28, the Dow suffered a record loss of 38.33 points, or 12.82%. The following day—”Black Tuesday”— held more devastating news for investors as stock prices dropped even more. 16,410,030 shares were traded on the New York Stock Exchange in a single day. The 1929 stock market crash resulted in billions of dollars lost and signaled the beginning of the Great Depression. The Aftermath In the wake of the crash, the U.S. Senate formed a commission responsible for determining the causes. The investigation uncovered a wide range of abusive practices within banks and bank affiliates and spurred public support for banking and securities regulations. As a result of the findings, Congress passed the Banking Act of 1933, the Securities Act of 1933, and the Securities Exchange Act of 1934. New York County Assistant District Attorney Ferdinand Pecora finalized the final report and conducted hearings on behalf of the commission and was later selected as one of the first commissioners of the SEC. Federal Securities Laws and Regulations The American banking systems suffered significantly in the wake of the stock market crash, as approximately one in three banks closed their doors permanently. Following the crash, the U.S. government imposed tighter rules and regulations on the financial industry. As securities evolve, regulatory agencies are responsible for imposing up-to-date regulations to protect investors. Banking Act of 1933 The Banking Act of 1933 (the Banking Act), implemented by Congress on June 16, 1933, signaled the start of many changes in the securities industry. First, the Banking Act established the Federal Deposit Insurance Corporation (FDIC), created to provide deposit insurance to depositors in United States depository institutions in an effort to restore the public’s trust in the American banking system.  Glass-Steagall provisions Four sections of the Banking Act—referred to as the Glass-Steagall legislation—addressed the conflicts of interest uncovered by Ferdinand Pecora during his investigation into the stock market crash of 1929. The Glass-Steagall legislation sought to limit the conflicts of interests created when commercial banks are allowed to underwrite stocks and bonds. In the previous decade, banks put their interest in promoting stocks and bonds to their own benefit, rather than considering the risks placed on investors. The new legislation banned commercial banks from: Dealing in non-governmental securities for customers; Investing in non-investment grade securities on behalf of the bank itself; Underwriting or distributing non-governmental securities; and Affiliation or employee sharing with companies involved in such activities. On the other side, the legislation prohibited investment banks from accepting deposits from customers. Deterioration and reinterpretation of Glass-Steagall provisions The separation of commercial and investment banks proved to be a controversial topic throughout the financial industry. Only two years after passing the Banking Act, Senator Carter Glass—the namesake of the provisions—sought to repeal the prohibition on commercial banks underwriting securities, stating that the provisions had unduly damaged securities markets.  Beginning in the 1960s, banks began lobbying Congress to allow them to enter the municipal bond market. In the 1970s, large banks argued that the Glass-Steagall provisions were preventing them from being competitive with foreign securities firms. The Federal Reserve Board reinterpreted Section 20 of the Glass-Steagall provisions to allow banks to have up to 5% of gross revenues from investment banking business. Soon after, the Federal Reserve Board voted to loosen regulations under the Glass-Steagall provisions after hearing arguments from Citicorp,...

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As formas mais comuns de violação do dever fiduciário (E o que fazer)

Breaches of fiduciary duty are unfortunately common. Since the fiduciary duty is the highest legal standard of care, however, there are severe consequences for a breach of fiduciary duty. With the help of an investment loss recovery attorney, you can hold the fiduciary accountable for his or her misconduct. What Is a Fiduciary Duty? A fiduciary is a person entrusted to act in the best interests of another (i.e. the principal). Once the fiduciary agrees to the relationship, the fiduciary is bound by a set of legal and ethical obligations, known as fiduciary duties.  In general, all fiduciaries owe a duty of loyalty and a duty of care. Some fiduciaries will owe additional duties based on the relationship and the industry in which they are in.  The duty of loyalty requires fiduciaries to act in the best interest of the principa, avoid any conflicts of interest, and refrain from self-dealing. The duty of care means the fiduciary must make informed decisions based on all information available.  Fiduciary Duties of Financial Advisors  While all financial advisors have a duty of care to their clients, only registered advisors have a fiduciary duty. It is important to know whether your financial advisor is registered with the U.S. Securities and Exchange Commission (SEC) or a state securities regulating agency. Financial advisors who are not registered can make investments that benefit them, as long as the investment is within your stated objectives. A registered financial advisor, on the other hand, can invest only if it is in your best interest. For registered financial advisors, the fiduciary duties owed vary by state. However, the following fiduciary duties apply to all registered financial advisors in all states Duty to Recommend Suitable Investments Prior to recommending an investment, the financial advisor must study and understand the investor’s objectives, tax status, and financial situation, among other things. Any investments that the financial advisor recommends must be suitable to the investor’s needs.  Duty to Inform Investor A financial advisor must fully inform the investor of the risks associated with the purchase or sale of a security. The advisor cannot misrepresent any material facts regarding the transaction. Duty to Act Promptly and with Authorization  All client orders must be performed promptly and with investor’s express consent. The advisor must obtain separate authorization for each investment unless the investor has a discretionary account.  Duty to Refrain from Self-Dealing  A financial advisor cannot initiate a transaction where he or she personally benefits. Duty to Avoid Conflicts of Interest For any recommendations made after June 30, 2020, financial advisors have a fiduciary duty to avoid any conflicts of interest. If unavoidable, the advisor must disclose the conflict to the investor.  What Constitutes a Breach of Fiduciary Duty? A breach of fiduciary duty occurs when the fiduciary fails to act in the best interest of the principal. This can happen through an intentional act or failure to act.  There are four elements to a valid breach of fiduciary duty claim. Duty A fiduciary relationship must exist for the fiduciary to owe a duty. You must show that the fiduciary knowingly accepted that role to hold them to the fiduciary standard of care. This is typically shown through a written agreement between the parties, such as a customer agreement. Breach The fiduciary must act contrary to your best interests. A breach of fiduciary duty can be shown through deliberate acts, such as making decisions on your behalf without consent. You can also prove a breach through the fiduciary’s failure to act—for example, not disclosing a conflict of interest.  Damages You must suffer actual harm or damages from the fiduciary’s breach. Proving there was a breach is not enough for a valid claim of breach of fiduciary duty. Damages can be either economic or non-economic, such as mental anguish.  Causation There must be a direct causal link between the fiduciary’s breach and harm to you. Despite your damages, if they are unrelated to the fiduciary’s misconduct or an unforeseeable result of the breach, you cannot recover your losses.  What Are Common Forms of Breach of Fiduciary Duty? Below are just a few examples of how a financial advisor can breach his or her fiduciary duty. In each instance, the fiduciary fails to act in the best interest of the investor. Misrepresentation or Failure to Disclose Information If a financial advisor does not present a client with all material information about an investment, this is a breach of fiduciary duty. Material information is what a reasonable investor would consider important when deciding whether to invest.  Sometimes financial advisors will mislead investors by omitting information, such as risk factors or any negative information about a stock.  Excessive Trading Excessive trading, also known as churning, in your account is a breach of fiduciary duty. Financial advisors will make large numbers of trades solely to generate more commissions for themselves.  Unsuitable Investments Financial advisors must “know their customer” before making investment recommendations. This includes understanding the client’s investment objectives, risk tolerance, time horizon, financial standing, and tax status. The advisor breaches their fiduciary duty if they make an unsuitable investment, even with the best intentions.  Failure to Diversify Your financial advisor must recommend a mix of investments so that your assets are properly allocated among various asset classes and industries. Failing to diversify your portfolio puts you in a position of great risk and is a breach of fiduciary duty. If your assets are over-concentrated in a particular stock or sector, you may experience significant losses if the company or industry does not perform well.  Failure to Follow Instructions When you give instructions to your financial advisor, they have the fiduciary duty to promptly perform your orders. If your advisor fails to follow your instructions in a timely manner and you suffer financial losses, you can recover.  What To Do If Your Financial Advisor Breached a Fiduciary Duty If you lost money at the hands of your financial advisor, there are several potential courses of action. An experienced investor loss recovery attorney can walk you through the different options and...

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