Suitability Claim:
Know Your Legal Rights Following Unsuitable Recommendations

A broker, brokerage firm, financial advisor, or financial consultant is required under FINRA’s (Financial Industry Regulatory Authority) suitability rule to properly assess a potential investor and only recommend investments that are appropriate for them. If you have suffered a financial loss, and feel that your advisor or broker did not take the proper steps when recommending stocks or investments, attorney Sean M. Sweeney and his team of attorneys can take legal action by filing a suitability claim against the advisor or brokerage firm. To learn more about whether you have a legal claim, contact our office in Milwaukee, WI, by completing our online form or calling us at (414) 755-5020.

It is the responsibility of every financial consultant to recommend the most appropriate investments based on the client’s unique needs.

What Is a Suitability Claim?

Prior to recommending investments or stocks to a client, a financial advisor must first learn about their client’s investment experience, risk tolerance, and investment objectives. According to FINRA rules, a firm and its associates must have a reasonable basis to believe that an investment involving securities is suitable for the individual. As part of their duty to properly understand a client’s needs and current financial situation, an advisor must make financial decisions based on:

  • Age
  • Experience in the market
  • Family circumstances
  • Financial situation and needs
  • Investment objectives
  • Liquidity needs
  • Risk tolerance
  • Sophistication
  • Tax bracket

Failure to adhere to the rules set forth by FINRA could mean that the investor can bring a claim against the advisor, broker, or brokerage firm. 

Why You Should Seek Legal Counsel

In many cases, investors seek financial guidance from a broker, firm, or advisor to assist them with their investments. Clients often lean heavily on their advisors to recommend sound investments and guidance on either a purchase or a sale. However, even with proper rules and regulations in place to minimize the risk, and legalities that prevent advisors from acting in contradiction to their clients’ needs, these types of cases exist.

Attorney Sean M. Sweeney has extensive experience with suitability claims and understands their complexities.

In the case that an advisor has failed to properly diversify a portfolio, has failed to explain the risk, acted in contradiction to the investor’s objective, committed an illegal act, or if a supervisor has inadequately trained a broker, an attorney can review any wrongdoing, investigate the case, and if applicable, file a legal claim. Since there is no government agency responsible for recovering your money, if you have been harmed, it is your responsibility to bring a claim.

We Only Get Paid if We Win

Attorney Sean M. Sweeney has extensive experience with suitability claims and understands the complexities of these types of investments. He will use all possible resources to help ensure his clients are in a better situation once their case is complete. The firm will not be paid unless the case is successfully settled or won. To learn more about whether your advisor has acted contrary to the rules laid out by FINRA, send us a message or call us at (414) 755-5020 to schedule a consultation.