Don’t Get Left Holding the Bag for Your Broker’s Mistakes: You can sue brokers and advisors for their negligence and breaches of fiduciary duties!
Brokers and financial advisors are held to a high degree of care in their dealings with the investors they serve. Investors look to their financial professionals for advice about how to reach their goals and trust those professionals to make the right recommendations. When brokers or advisors fail to meet the standard of care and investors lose money by following bad advice, an action for negligence or breach of fiduciary duty may be appropriate.
A broker or advisor does not need to act intentionally in these matters in order to be held liable for your losses. There are many cases where a financial professional with the best intentions recommend unsuitable investments or failure to diversify an investor’s accounts in a way that sufficiently limits risk exposure in breach of his/her duties to investors.
Depending upon the timing of the recommendation, where you live and the nature of your relationship with your advisor, he/she may be held to an even higher standard of care as a fiduciary to always act in your “best interest” in making recommendations. All investment advisors and stockbrokers managing discretionary accounts who charge a fee to monitor and manage your portfolios are “fiduciaries” and held to the highest standard of care in everything they do in the relationship. The law requires an investment advisor or broker with discretionary authority to:
- manage the account in a manner directly comporting with the needs and objectives of the customer as stated in the authorization papers or as apparent from the customer’s investment and trading history;
- keep informed regarding the changes in the market which affect his customer’s interest and act responsively to protect those interests;
- keep his customer informed as to each completed transactions; and
- explain forthrightly the practical impact and potential risks of the course of dealing in which the broker is engaged.
Even brokers without discretionary authority have a set of fiduciary duties limited to each recommendation or transaction:
- the duty to recommend (investments) only after studying it sufficiently to become informed as to its nature, price, and financial prognosis;
- the duty to perform the customer’s orders promptly in a manner best suited to serve the customer’s interests;
- the duty to inform the customer of the risks involved in purchasing or selling a particular security;
- the duty to refrain from self-dealing … ;
- the duty not to misrepresent any material fact to the transaction; and
- the duty to transact business only after receiving approval from the customer.
For all recommendations after the June 30, 2020 effective date of Regulation Best Interest (Reg. BI) all brokers now have a fiduciary duty to avoid conflicts of interest; and if they cannot avoid them, they must disclose all conflicts of interest; and all brokers must now act in the “best interest” of the customer in making any recommendation.
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“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. -