Plaintiffs' Personal Injury Law Firm

Breach of Fiduciary Duties

When a financial organization or securities company conducts business they have a fiduciary duty to give their clients the highest level of service. This fiduciary obligation is an unwritten rule that dictates that an investment company is not going to take advantage of its clients as a result of information that they may have as experts in their field.

A client goes to a financial investment company for advice and direction and they should be presented with all of the facts and information so that they can make an educated decision. Withholding any information that would alter this decision and cause a client to suffer an unnecessary financial loss is a breach of fiduciary duties.

Another form of fiduciary breach is employing brokers who use deceptive tactics to generate business. Some brokers feel that they are above the law and push innocent investors into transactions that actually put them into worse financial shape than when they started.

This type of behavior is not acceptable and the Financial Industry Regulatory Authority (FINRA) is the watchdog organization that works to make sure these occurrences do not happen and if they do that the appropriate consequences are carried out. Fines are usually levied and many a broker has been suspended for a period of time as a result of their own breach of fiduciary duties.

FINRA has policies and procedures in place that are meant to hold financial companies accountable for their action. They are not supposed to benefit at the expense of any of your dealings with them.

There has to be some type of accountability in place for these firms. They have the expertise and knowledge behind them that makes it is so easy for them or their brokers to take advantage of clients who don't have access to the same information. When you are seeking investment advice in order to try to improve your financial situation you should not have to worry about being taken advantage of by a deceptive broker.

It is not to say that these situations don't occur because unfortunately they do. Brokers figure out a financial plan that ultimately takes advantage of an innocent client and the client suffers financially while the broker reaps the rewards. But the brokers have to realize that no matter how long a period it looks like they are raking it in and no one is the wiser, they will always get caught.

If you have been the victim of a greedy investment broker who has realized financial rewards at your expense, please contact our team of attorneys who specialize in securities arbitration. At Napoli Bern Ripka we have the experience behind us to prove misleading practices and help you to realize the compensation that you deserve as a victim of this breach of fiduciary duties. Give us a call at 1-888-LAW-IN-NY for a free consultation.