Listen. Advise. Advocate.

What if your broker offers inappropriate financial advice?

On Behalf of | Jul 7, 2022 | Financial Fraud |

When you hire a financial professional, you rely on them to provide insight into the investments you will make. You also trust them to present you with investments that will help you achieve your long-term financial goals. Suppose a financial professional advises you to make investments that do not reflect your goals. In that case, that may significantly damage your future financial health. What should you know about unsuitable investments?

What makes an investment “unsuitable”?

According to the Finance Industry Regulatory Authority (FINRA), brokers must consider the suitability of their recommended investments. A suitable investment strategy will reflect a variety of different factors for each client, including

  • Your age and investment experience
  • Your tolerance for risk in the investments you make
  • Your goals and objectives
  • Your financial situation, including other investments you have made
  • Your tax status
  • How readily you may need to liquidate assets

Your broker should explain how an investment fits your unique financial goals and provide you with the information you need to make informed decisions.

You may want to be wary of brokers who do not disclose important information about an investment, ignore aspects of your investor profile or push you to make purchases without taking time to consider their suitability. Each of these actions could be a red flag that an investment is unsuitable for your portfolio.

Suppose you have noticed your broker making unsuitable recommendations or have been pushed into unsuitable investments. In that case, you do not have to accept those fraudulent actions. You can hold financial professionals accountable for their unsuitable recommendations and protect your investment portfolio in the process.