Breach of Fiduciary Duty Lawyer

Hire a reputable securities and investment lawyer at Patil Law after you’ve suffered a significant investment loss caused by your trusted adviser’s breach of fiduciary duty.

While it is true that even the most experienced investors take heavy hits, there are instances where these are not merely the result of normal market fluctuations, but rather the consequence of your broker or financial adviser’s wrongdoing.

Patil Law’s founder, Chetan Patil, has over 15 years of extensive experience in diverse, complex financial transactions across the country. To date, the law firm has recovered over $25 million on behalf of its clients. Feel free to browse through the firm’s impeccable track record.

Chetan specializes in litigations, trials, arbitrations, and appeals of complex securities, Financial Industry Regulatory Authority (FINRA) cases, and financial and business disputes, with an emphasis on securities, financial services, and financial regulatory law.

Why Choose Patil Law?

Patil Law’s clients will benefit from the depth and breadth of Chetan’s legal experience and judgment. He has handled and overseen over a thousand litigation and arbitration cases nationwide in federal and state courts and arbitration forums.

As a testament to their deep care and commitment, Chetan and his team of legal experts travel extensively for their clients all around the country.

They have represented defrauded investors, family trusts, family offices, public and private companies of all kinds, including banks and other financial institutions, broker-dealers, registered investment advisors, advisory firms, and securities brokers.

We operate on a contingency fee basis, which means we only get paid if we secure a favorable settlement or verdict for our clients. Call Patil Law now at (800) 950-6553 or send us a message through our secure and confidential online form. Our compassionate team of professionals is always on standby to provide urgent assistance.

Understanding ‘Breach of Fiduciary Duty’

When it comes to managing your investments, you want to be sure that your interests are always put first. This is where the concept of fiduciary duty comes into play. Investment advisers are held to a strict fiduciary standard, as regulated by the Securities and Exchange Commission (SEC) and state securities regulators. But what does this really mean for you as an investor?

At its core, the fiduciary standard requires investment advisers to prioritize their clients’ interests above their own. This duty encompasses both loyalty and care, ensuring that your adviser is always working in your best interest. Once this duty has been breached, you may be able to pursue legal remedies.

‘Best Execution’ Standard

An adviser bound by fiduciary duty cannot engage in practices such as buying securities for their own accounts before purchasing them for their clients or making trades that result in higher commissions for themselves or their firms.

Moreover, fiduciary duty demands that investment advisers provide advice based on accurate and complete information backed by thorough analysis. They must strive to avoid conflicts of interest and disclose any potential issues that may arise.

When it comes to executing trades, advisers are obligated to adhere to the “best execution” standard, meaning they must seek the optimal combination of low cost and efficient execution.

This standard serves as a powerful safeguard, ensuring that your adviser is always working diligently to help you achieve your investment goals while maintaining the utmost integrity and professionalism.

Common Examples of ‘Breach of Fiduciary Duty’

As experienced breach of fiduciary duty lawyers, the common cases we handle include:

Conflict of Interest

This happens when an adviser recommends an investment product to a client that provides a higher commission or fee to the adviser, even though other, more suitable options are available. This puts the adviser’s financial interests ahead of the client’s, breaching the duty of loyalty.

Inadequate Disclosure

When an adviser fails to fully disclose material information about an investment, such as the risks involved, the potential for loss, or any conflicts of interest, it can also be considered a breach. This lack of transparency hinders the client’s ability to make informed decisions and violates the adviser’s duty of care.

Unsuitable Recommendations

This occurs when an adviser suggests an investment strategy or product that is not aligned with the client’s risk tolerance, financial goals, or overall situation. For example, recommending a highly speculative stock to a risk-averse, retirement-age client would be a breach of the adviser’s fiduciary duty to provide suitable advice.

Investment Advisers vs. Broker-Dealers

In the world of investment management, it’s crucial to understand the distinct roles and responsibilities of two key players: investment advisers and broker-dealers. While both professionals offer financial services, they are held to different standards of conduct and have varying obligations to their clients.

As previously discussed above, investment advisers are bound by a fiduciary duty, which requires them to prioritize their clients’ interests above their own. They must provide advice and recommendations that align with their clients’ financial goals, risk tolerance, and overall circumstances.

This fiduciary standard is regulated by the Securities and Exchange Commission (SEC) or state securities regulators, ensuring that investment advisers maintain the highest level of integrity and loyalty to their clients.

‘Suitability’ Obligation of Broker-Dealers

In contrast, broker-dealers are subject to a “suitability obligation” under FINRA’s rules. This means that they must make recommendations that are suitable for their clients’ best interests. However, the suitability standard is less stringent than the fiduciary duty imposed on investment advisers.

Some broker-dealers argue that this obligation can hinder their ability to sell certain investment products that benefit their bottom line. Nonetheless, the suitability obligation ensures that broker-dealers consider their clients’ needs and objectives when making recommendations.

Suitability also extends to ensuring that transaction costs are reasonable and not excessive. Broker-dealers must avoid “churning” accounts or generating unnecessary trading fees that deplete their clients’ returns. Every recommendation they make should be in the best interest of the client, rather than solely benefiting the broker-dealer.

Whether you’re dealing with an investment adviser who has breached their fiduciary duty or a broker-dealer who has made unsuitable recommendations, it’s crucial to know your legal rights and options for recourse.

This is where having a skilled securities attorney by your side can make all the difference. Call Patil Law now at (800) 950-6553 or send us a message for more information.

Can A Lawyer Help Recover Your Investment Losses After A Breach?

A securities and investment lawyer can help you take proactive steps to recoup your investment losses and hold those responsible accountable for their actions.

Watching your hard-earned investments disappear due to your brokerage firm’s carelessness and recklessness can be an emotionally devastating experience. Such a betrayal can leave you feeling helpless and unsure of where to turn.

You don’t have to face this difficult situation alone. At Patil Law, we can comprehensively discuss your legal options after your broker or investment adviser breached their duties.

Filing a Lawsuit Against Your Broker or Investment Adviser

Recovering investment losses can be challenging, but it’s important to remember that there are legitimate avenues available to explore. While the road may be difficult, individuals who have fallen victim to financial fraud or negligence have the right to seek justice and recoup their damages.

One potential course of action is to file a civil lawsuit. This process involves engaging the services of experienced attorneys who specialize in handling financial securities cases. These legal professionals can provide invaluable guidance and counsel, helping clients through the legal system and determining the most appropriate remedies based on the specific circumstances of their case.

It’s important to approach the decision to file a civil lawsuit with a clear understanding of the potential challenges involved. Legal proceedings can be time-consuming and costly, and even in cases where a judgment is awarded in favor of the plaintiff, collecting on that judgment may present additional hurdles.

FINRA Arbitration

Aside from filing a civil lawsuit against your broker or adviser, you may also choose to proceed with an arbitration claim or request mediation through the Financial Industry Regulatory Authority (FINRA).

The latter deals with a dispute involving the business activities of a brokerage firm or one of its brokers, and the parties seek monetary or other relief. Generally, to be considered for arbitration or mediation, the alleged act that gave rise to the claim must have taken place within the past six years.

However, if arbitrators see that an ongoing situation is causing the dispute, it can still be submitted. For instance, if a customer bought stock 10 years ago and there are claims of ongoing fraud from the time of purchase until six years before filing, it can still be accommodated.

Guide To SEC’s Changes to the ‘Investment Advisers Act of 1940’

In August 2023, the SEC adopted a set of new rules and amendments under the Investment Advisers Act of 1940, collectively known as the “Private Fund Adviser Rules.” These changes are expected to have far-reaching implications for private fund managers and their clients since there are expanded expectations for the former to fulfill their fiduciary obligations.

By working closely with skilled lawyers, investors in private funds should be aware of the enhanced protections and disclosures they are entitled to under the new rules.

Clients may also benefit from seeking independent legal advice to fully understand their rights and make informed decisions regarding their investments.

Call A Trusted Breach of Fiduciary Duty Lawyer Now

Consult with a breach of fiduciary duty lawyer at Patil Law if you have suffered financial damage from the actions of your broker or financial adviser. Remember, you have the right to expect a high level of diligence from those you entrusted with your money to act in your best interests. Don’t let their misconduct go unchallenged.

At Patil Law, we are committed to holding brokerage firms accountable when they neglect their duties and cause harm to innocent and hardworking investors. We have access to vast resources and a formidable network of legal and financial professionals who can build your case and fight for your rights.

If you or a loved one has experienced significant losses due to your broker or financial adviser’s breach of fiduciary duty, call us now at (800) 950-6553 for a free consultation or send us a message through our secure and confidential online form.