Practice Areas

What Is An Unsuitable Recommendation?

Your broker has a responsibility to recommend investments based on your investment needs and objectives, as well as your appetite for risk, if any. If you don't want to make investments that place your principal at substantial risk of loss, they shouldn't be recommended to you.

Elderly people, for example, who live on fixed incomes should not have a lot of their money put into risky investments, structured products, non-traded REITs or other investments that don't provide ready access to funds if needed for an emergency.

If you believe that your stockbroker has recommended an unsuitable investment or investment strategy by your stockbroker or financial adviser, it's important to contact an experienced lawyer who can help protect your future and your rights. At Mihalek Law, our attorneys have more than 50 years of combined experience protecting the rights of investors who fell victim to broker misconduct. From our office in Lexington, Kentucky, we represent clients across the country.

Determining Suitability Of Investments

When a stockbroker, investment adviser or financial planner recommends an investment, he or she must have reasonable grounds to believe that the investment is suitable for the client in light of the client's financial circumstances, risk tolerance and investment objectives.

If the broker fails to learn of the financial condition and investment goals of a client, this responsibility has not been met. Additionally, if the financial adviser recommends an investment that does not coincide with a client's investment objectives and/or risk tolerance, there is a violation.

Contact Our Attorneys With Your Unsuitability Of Investment Claims

When you contact our attorneys for a free consultation and case evaluation, we can help determine whether your stockbroker may be liable for damages resulting from his or her unsuitable investment recommendations. Do you have a claim? Learn more by completing our online contact form or by calling 800-783-1413.