Skip to Content

Investment and Financial Professionals Have a Duty to Disclose All Conflicts and Other Material Information

When you hire a broker or advisor to help you invest, you expect to receive advice focused on your best interests. Unfortunately, this isn’t always the case. Some brokers and advisors recommend investments based on what is best for them, and some will provide false or incomplete information to get you to put your money at risk.

What is a Disclosure Obligation?

Brokers and advisors have a duty to disclose conflicts of interest and all other material information about the investments they recommend. As a result, if you have lost money investing as a result of your broker’s or advisor’s breach of the duty to disclose, you may be entitled to recover your losses through FINRA arbitration. Our investment fraud lawyers represent investors nationwide in cases involving disclosure violations. If your broker or advisor has violated the duty to disclose, we can help, and we encourage you to contact us promptly to discuss your legal rights.

Duty to Disclose Conflicts of Interest

Brokers and advisors are entitled to earn reasonable fees for their services. However, they are not entitled to earn excessive fees at their clients’ expense and without their clients’ consent.

Whether through revenue-sharing agreements with mutual funds or other types of financial relationships with other issuers, brokers and advisors can have various conflicts. When a conflict exists, a broker or advisor has a duty to disclose this conflict to his or her clients. Violating this duty to disclose can give rise to a claim in FINRA arbitration, and aggrieved investors are entitled to fully recover the losses they suffer due to their broker’s or advisor’s failure to disclose.

Our financial fraud attorneys have handled numerous cases involving a breach of brokers’ and advisors’ duty to disclose. By presenting the communications and disclosures you received from your investment professional (or lack thereof), we can prove that you did not receive the information you needed to make an informed decision. We can also use our experience to accurately calculate the losses resulting from your broker’s or advisor’s failure to disclose a conflict, and we can effectively assert your legal rights in arbitration.

Investing Based on False Information

Under FINRA’s rules and federal securities laws, brokers and advisors have a general duty to accurately disclose all material information pertaining to the investments they recommend. Providing false information – including partial or misleading information – also violates brokers’ and advisors’ duty to disclose. We have significant experience in these cases as well; and, if you lost money because you relied on false, misleading or incomplete information about an investment opportunity, we can file a claim with FINRA to recover your fraudulent investment losses on your behalf.

Do You Have a Claim for Breach of the Duty to Disclose?

Did your broker or advisor withhold information about a conflict of interest? Did you invest based on information that you subsequently learned was false or misleading? If so, you may be entitled to recover your investment losses through FINRA arbitration. To learn more, call 212-742-1414 or schedule a free consultation with an financial fraud attorney at Zamansky LLC today. 

Client Reviews

View More