Breach of Fiduciary Duty

Breach of Fiduciary Duties | Breach of Fiduciary Duty Attorney

Investors place significant trust in their financial consultants, investment advisors, and stockbrokers (“investment professionals”). Investors rely upon these individuals for expertise when receiving investment recommendations. As a result, investment professionals are held to the highest standard of loyalty and care. Investment professionals must conduct themselves with the highest standards of loyalty, integrity, and good faith.

Investment professionals have certain obligations and duties to investors such as:

  • Managing an investor’s savings to meet that investor’s needs and objectives
  • Maintaining a working knowledge of changes in market conditions
  • Acting responsively to protect each investor’s needs
  • Fully explaining the risks of recommending certain investments and/or investment strategies

To avoid breaching the duties owed to investors, investment professionals must:

  • Research every recommendation prior to making it
  • Make full and complete disclosures
  • In non-discretionary accounts obtain investor approval prior to making trades
  • Place orders in a timely manner

If an investment professional puts their own interest ahead of the investor’s, a claim for breach of fiduciary duty arises. If an investment professional makes recommendations that do not meet an investor’s investment objectives, income needs, or risk tolerance, that duty is breached. If an investment professional fails to conduct proper due diligence and fails to adequately explain the pertinent risks or features of a particular investment or investment strategy, this investment professional has breached their duty to the investor. If an investment professional recommends a particular investment because it pays the investment professional a significant commission or because the investment professional’s firm is an underwriter of that particular investment, the investment professional has breached their fiduciary duty to those investors. Breach of fiduciary is the most common claim filed by investors in claims against investment professionals and their respective brokerage firm, or bank.

Legal Help for Victims with Breach of Fiduciary Duty Claims

If your investment professional put their needs ahead of an investor’s, failed to conduct proper research of a particular recommendation, failed to disclose the risks and pertinent features of a particular investment, or made recommendations that do not meet an investor’s needs, goals, and risk tolerance, a claim for breach of fiduciary duty may exist.  Gilman Law LLP is a leading securities fraud law firm and is here to help you recover damages concerning the breach of fiduciary duty. For a FREE  evaluation of your case, please fill out our online form, or if you need to speak to an attorney right away CALL TOLL FREE (1-888-252-0048) today.