Failure To Follow Your Instructions Is a Breach of Fiduciary Duty
If brokers and advisors owe a customer any fiduciary duty to do anything, it is the “duty to perform the customer’s orders promptly in a manner best suited to serve the customer’s best interest.” In other words, brokers and advisors must follow customers’ instructions and do so promptly. Sometimes this duty is referred to as the duty to execute orders, but there are differences and additional responsibilities in the manner an order is executed.
If a customer gives a broker an order to purchase or sell a security; an instruction to enter a particular kind of order (e.g., market order, limit order, good-to-cancel (GTC) order); a stop-loss order, a buy-stop order, etc.; an instruction to use your cash only and not borrow (use margin) to purchase a security; or even direct a trade to a particular exchange or market maker, or electronic communications network (ECN), all brokers must follow those instructions and do so in a prompt manner.
Unless a customer directs otherwise, the broker can execute your trade in many places. The broker can execute it off an exchange (if it is a listed security), “market maker,” ECN, or through the firm’s own traders who buy and sell in and out of inventory. Regardless, the broker must also seek the “best execution” of the customer’s order, and that involves a quick assessment of the competing markets, market makers, or ECNs offering the most favorable terms of execution.
When a broker fails to follow your instruction and/or execute your order in a timely manner, you may be able to recover your investment losses resulting from the failure to follow your instructions. While brokers also have a duty to keep accurate records of orders placed, you should also keep records of the date, time, type of order placed and the price you were quoted at the time the order was placed; you should review the activity in your account on-line, if possible; you should review the confirmation you will receive in the mail or electronically shortly after the order is entered to be sure your instructions were followed; and if the order was not entered properly or timely, you should complain, in writing, by email or otherwise to the manager of the office.
Hear From Our Clients
At The Law Offices of Robert Wayne Pearce, P.A., we believe the ultimate barometer of our success is surpassing the expectation of our clients.
The following clients have direct knowledge of our firm's processes from the inside and experienced our fierce advocacy.
Hear From Our Clients
- “Robert Pearce is part of that unusual breed of lawyers that are able to create empathy with clients and thoroughly adopt their cause”
No half efforts here. He and his group of professionals are outstanding strategists that can execute with precise fervor and unyielding determination. Theirs is a huge wave of facts, research, precedents and preparation, that has impressed me in its thoroughness and creativity, and most importantly with the results. No stone goes unturned and no effort is ever spared. In my book, he and they are those of a very rare kind that one wants to keep for a very long time.- Ramon Flores-Esteves -
- “Just like the song from HAMILTON, it's so nice to have Bob Pearce on your side.”
Just like the song from HAMILTON, it's so nice to have Bob Pearce on your side. He is the consumate plaintiff's lawyer: smart. dedicated, fully able to try a case but a great negotiator in a mediation. He did a wonderful job for us, fully supporting us through the process and more than holding his own against a large national law firm.- Maurice Z. -
- "Mr. Pearce and his staff exceeded all of our expectations."
Mr. Pearce and his staff exceeded all of our expectations. We were able to reach a settlement that was of our complete satisfaction, all within a very smooth, professional and efficient process. Mr. Pearce is now not only our lawyer but our family friend. We highly recommend him and his team!- Severiano L. -
- "For the best fighting chance, Robert Pearce is the lawyer you want in your corner."
This law firm is the real deal. We were so lucky that they took our case as they have so much experience in securities and all the wrongdoing that happens in these investment companies where they mislead you and your money (as in our case) into schemes that are not what you think they are. Mr. Robert Pearce is one of the best lawyers around, a truly professional who will fight for you and will tell you as it is all the time. We could not have gone thru this experience if it was not for all the advice, guidance and support he and all of his staff and associates brought to the game. For the best fighting chance, Robert Pearce is the lawyer you want in your corner.- Astrid M. -
- "He never felt intimidated and his study of the case and perseverance prevailed at all times."
Attorney Robert Pearce was our lawyer in a case against a Brokerage Firm and I'm witness to his ability and intelligence to deal with lawyers from the most prominent law firm in New York which was the key to recovering much of our losses cheered by their negligence. He never felt intimidated and his study of the case and perseverance prevailed at all times.- Jose A. C. -
- "In the end, Bob and I had the last laugh when the arbitrators awarded me almost 6 million dollars."
No lawyer except Bob said I had a chance of winning. When UBS Lawyers laughingly offered me zero to settle the dispute, Bob became even more determined to prove everybody wrong. Bob was extremely prepared, and always a step ahead of the opposing attorneys throughout the arbitration. In the end, Bob and I had the last laugh when the arbitrators awarded me almost 6 million dollars.- J. Blanco -
- "Every meeting and phone call was made with dedication and desire to help our family every step of the way."
Robert's team is excellent. They are very competitive in what they do and they are very responsible. Every meeting and phone call was made with dedication and desire to help our family every step of the way. Their professionalism, responsibility and empathy assured us that we were in good hands. Recommend to everyone.- Mayra A. -