Portfolio Mismanagement

When your investment portfolio has been mismanaged and you aren’t sure whom to call to discuss the recovery of your stock losses, reach out to a qualified portfolio mismanagement lawyer.

The management of an investment portfolio is one of the most important responsibilities a financial advisor has. Your investment portfolio contains all of your investment goals, objectives, and preferences for your investments. Here, you would outline your plans are for your investments as well as the level of risk you are willing to take.

But when your broker fails to manage your portfolio correctly, you can suffer catastrophic investment losses due to their negligence or misconduct. Get help recovering your investment losses by reaching out to a qualified portfolio mismanagement lawyer at Wolper Law Firm, P.A..

How Investment Portfolios Should Be Managed

Registered stockbrokers and financial advisors have an obligation to act in your best interests. This is known as fiduciary duty.

When your investment goals do not align with the financial objectives of your broker, there is a strong possibility your broker could have mishandled your investment portfolio. They could generate commissions for themselves in a number of different ways, including:

  • Misrepresentation
  • Excessive trading (churning)
  • Unauthorized trading
  • Selling away
  • Lack of diversification
  • Misrepresentation or omission
  • Failure to supervise
  • Engaging in Ponzi schemes

These are just a couple ways your financial advisor could take advantage of you and fail to follow your investment goals as outlined in your investment portfolio. A portfolio mismanagement lawyer can help you to determine whether you have grounds for an arbitration complaint through the Financial Industry Regulatory Authority (FINRA).

Recovering Losses Caused by Portfolio Mismanagement

When you file a FINRA arbitration complaint, you are essentially claiming that your financial advisor is directly or indirectly responsible for the stock losses you endured. The great thing about the financial industry is that there is almost always a paper trail. During FINRA arbitration, your stockbroker must explain their reasoning for the decisions they made with your investment portfolio.

If the FINRA arbitrators determine your financial advisor failed you and mismanaged your investment portfolio, they may decide that you should be paid restitution for the losses you suffered. Your advisor will then have just thirty days from the date of the decision to compensate you for your losses.

However, it should be noted that FINRA arbitration decisions cannot be appealed. So if the arbitrators do not feel as though a case has been made that your broker mismanaged your portfolio, you should not expect to be repaid for your investment losses.

Get in Touch with a Portfolio Mismanagement Lawyer

If your life has been dramatically impacted by substantial stock losses and you believe that mismanagement of your investment portfolio is to blame, reach out to a dedicated portfolio mismanagement lawyer at Wolper Law Firm, P.A. to confidentially discuss the individual details of your case.

Schedule a free, no-obligation consultation by calling our office at 800.931.8452 or submitting the quick contact form included below.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]