Everyone has different needs and objectives when it comes to investing, focused on meeting unique goals that are important at specific stages in their lives. Recommendations for suitable investments should be based on a particular situation and one’s needs and aims, to create a portfolio that gives them balance and allows them to steadily move toward their goals.
Investors will turn to stockbrokers and financial advisors to help them. They need experts that can give them the best advice using their knowledge and experience. The problem is that conflicts of interest arise, especially when you are talking about commissions and fees. This means that your broker or advisor might not focus on your needs but on how much money they can make selling you certain products.
Anything that charges a higher commission can be riskier and will dramatically impact your return. Suitability puts the needs of the broker or advisor second. Your needs are the first thing they should consider when selecting investments and making recommendations.
This gives you a portfolio that is tailored to your needs. You will see better performance and more stability. Reaching these objectives is challenging, and you could have unsuitable recommendations inside your portfolio and don’t know it.
The best approach is to visit an unsuitable investment lawyer at the Wolper Law Firm, P.A.. We are proficient in securities and trial law and know how to identify unsuitability by looking at many different factors.
What is Unsuitability?
The Financial Industry Regulatory Authority (FINRA) oversees investment professionals. It requires that all advice must take into account your situation when making any recommendations. This involves looking at many different factors, including:
- Age: This looks at your age relative to the amount of volatility and income received. As you get older, you will become less aggressive and want something that is more stable and generates income. This is different from someone who is in their 20s and wants to see aggressive growth.
- Income: Your income will decide if the investment is right for you financially. In general, the riskier investments require higher levels of income to participate. These investments are very risky, and the losses could be catastrophic for those investors earning less money.
- Net worth: The net worth shows that you can handle the levels of risk and what strategy should be utilized. Individuals with a lower net worth will need conservative investments.
- Liquidity: This determines the investor’s ability to handle the risks of certain investments. Those with higher amounts of liquidity can withstand volatile swings in the markets.
- Time horizon: This looks at your goals and how long it will be until you need the money.
- Tax situation: Your tax bracket focuses on tax implications. Those investors in higher tax brackets are looking for ways to reduce their capital gains and taxable investment income. This is different from someone in a lower tax bracket.
- Risk tolerance: Risk tolerance looks at how well an investor can handle volatility. This means asking them about their comfort level and whether they can handle the up and down swings.
- Other pertinent information: Other information is included as a part of the investor profile. The broker, financial advisor, and firm will use this to get a better understanding of the client. For example, someone who is into risky hobbies, such as hang gliding, is more likely to be aggressive. This is a part of their personality and investment style. This helps your financial professionals to create customized investment plans.
These are the basic standards that FINRA uses to determine if an investment is suitable for you.
FINRA goes one step further than the basic suitability rules and looks at three other factors when making recommendations. These are:
- Reasonable basis: This is when your broker or financial advisor believes that the recommendation is suitable. They have performed lots of research and analysis to ensure the investment aligns with your goals.
- Quantitative: This standard looks at two similar investments. The first one has a higher commission and a lower return. The second one pays less in commission, but the return is higher. Your broker or advisor should always choose the second one. They must put your best interests first. This means you pay a lower commission and will see higher levels of performance.
- Customer-basis: This approach is using the information from the previous section such as age, income, net worth, liquidity, timeframe, tax brackets, and risk to make recommendations. You will fill out a questionnaire when you start working with your broker or advisor. Sometimes this is updated at annual meetings to make sure nothing has changed. All of this is used to create a profile for customized investments.
These additional standards help FINRA to understand the reasoning for making recommendations. Your broker, financial advisor, and firm must make sure they are following it.
Why Choose Us?
The knowledge, experience, and dedication of the Wolper Law Firm, P.A. team are what help us focus on your case and do the best job as unsuitable investment attorneys.
We will go in and look at your situation objectively. Our goal is to make sure that your financial professional and their firm are following FINRA guidelines. We will uncover any wrongdoing and let you know the best options.
Our firm was founded to offer ordinary investors the knowledge and experience they need to combat unscrupulous financial professionals. Matt Wolper started the firm after working with the top Wall Street firms for 14 years. He saw how investors did not have a chance against a big firm. These firms used their money and connections to their advantage. Matt started Wolper Law Firm, P.A. to level the playing field. His knowledge and experience help you to see what is happening and hold the broker or financial advisor responsible.
Matt’s leadership set the tone for our team of professionals. We will investigate your situation to get the answers we need. Nothing is overlooked and our focus is on getting to the bottom of your case. We have five-star reviews from our clients and will help you to get back the money you lost.
You need someone on your side who knows the industry to help guide you. The Wolper Law Firm, P.A. will help you to recover your losses. Unsuitable recommendations could be the reason why you are losing money. Contact us today at 954.406.1231 / 800.931.8452 and get your free consultation.
How We Can Help
The unsuitable investment lawyer can find out what is going on and help you in addressing these issues. Our team will hold your financial professional and the firm accountable. FINRA takes unsuitability seriously, and you need someone on your side that will fight for you.
We have a 99% success rate and will work with you to recoup your losses, commissions, and fees. You can discuss your case with an unsuitable investments attorney for free and we will tell you what we can do.
Call the unsuitable investment lawyers today at 954.406.1231 / 800.931.8452 and see how the Wolper Law Firm, P.A. can make a difference. Our free consultation lets us take a look at your case and tell you the best available options. Never take your financial professional’s word for it — talk to the experts you can trust at the Wolper Law Firm, P.A..
”I appreciate attorney Matt Wolper for his professionalism & expertise on handling my case. We’ve reached a settlement with satisfaction. He is highly recommended.” – Becky Chen (Google Review)