The answer is: Yes, you can sue your financial advisor. You can file an arbitration claim to seek financial compensation when an advisor – or the brokerage firm they work for – fails to abide by FINRA’s rules and regulations and you suffer investment losses as a result.

Can you sue a tax advisor?

Q: Can I sue my tax preparer for making a mistake? A: Yes, provided they have committed negligence, or a malpractice. California’s comparative negligence jurisdiction, in a lawsuit, the client is usually in the best position to catch an error, and therefore a 100% recovery is rare.

Can financial advisor lose your money?

If your financial advisor outright stole money from your account, this is theft. These cases involve an intentional act by your financial advisor, such as transferring money out of your account. However, your financial advisor could also be stealing from you if their actions or failure to act causes you financial loss.

What is financial malpractice?

Financial malpractice is professional negligence by act or omission by a financial advisor in which the investment recommendation provided falls below the accepted standard of practice in the financial services industry and causes financial injury or a great loss to the investor.

Can a person Sue a registered investment advisor?

Yes, you can sue your financial advisor. Registered investment advisors operate under a number of securities laws and financial industry rules and regulations.

Can a financial advisor sue a stock broker?

Registered investment advisors are subject to well-defined financial industry rules and regulations. If your stock broker or financial advisor breached those rules and regulations, and you lost money because of it, you can sue to recover your losses. Investment losses? Let’s talk. Or, contact us online.

Is there a time limit for suing a financial adviser?

In the majority of cases there is a six year time limit to bring a claim against a financial adviser from the date of their negligent advice. If the negligence doesn’t immediately come to light or is not evident until later it may still be possible to claim that the time period can start from 3 years from the “date…

Can a financial advisor be held liable for a loss?

Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification. Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades.