Phoenix Unsuitable Investment Claims Attorney
When you hire a broker to invest your money, your broker is required to recommend suitable investments based on your age, income, liquidity needs, health, financial condition, tax situation, time horizon, financial savvy, risk tolerance and investment goals. If you do not provide this information, your broker is required to ask you. This is known as the “know your customer” rule.
Our Phoenix unsuitable investment attorneys prosecute and defend claims arising out of unsuitable investments. Examples of unsuitable investments due to stockbroker negligence include:
- Investing the money of an elderly person in high-risk stocks. If the investments decline in value, the customer may not have enough time to recover the money.
- Over-concentrating clients’ investments in one asset class Selling highly speculative investments, alternative investments and/or private placements when the customer does not understand the investments
- Selling illiquid investments such as real estate when the customer needs steady monthly income
- Investing retirement funds in a variable annuity
- Selling investments not sponsored or approved by the brokerage firm (selling away)