The retirement funds of individuals, particularly individuals near retirement, are owed a special standard of care. FINRA has cautioned its members that:
Firms should carefully consider the risk of a product with the age and retirement status of the customer in mind, including its market, inflation and issuer credit risk. Investment involves varying degrees of risk and reward. For many investors who are at or nearing retirement, there can be a temptation to reach for yield to maximize retirement income without the appreciation of the concomitant risk.
Moreover, it can be difficult for some investors to fully appreciate the risks of certain products or strategies, particularly if they are concerned about running out of money. Yet, especially when investments involve retirement accounts or lump-sum pension plan payments, taking undue risks with funds needed to last a lifetime can be financially disastrous. (See FINRA Notice to Members 07-43).
Among those duties is the duty of due care, loyalty or to refrain from self-dealing, and the duty of candor, or not to misrepresent or omit material facts.
However, sometimes, a stockbroker or financial advisor in connection with the provision of retirement advice may commit fraud, by either making false promises or making defective investment recommendations that are better suited to further their financial interests than the investor’s financial interests.
Many times a stockbroker or financial advisor will falsely represent the income or withdrawals that can be safely made from a retirement or qualified account or provide the investor with material misleading hypothetical examples. Many investors facing early retirement from a particular company may be solicited individually or as a group by stockbrokers seeking to obtain control of their retirement accounts. Many times these investors are sold the same defective or unsuitable financial products. These investors are also given the same false promises. The result is often disastrous.
If you are the victim of retirement fund fraud by a stockbroker and financial advisor, you might be entitled to recover your damages. For a free evaluation of your claims, contact us for a free, confidential, no obligation evaluation of your claims.
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
For more information concerning common claims against stockbrokers and investment professionals, please visit us at securitiesarbitrations.com
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com