When you’ve worked hard to fund your retirement or your kids’ college fund, and put your trust in a broker and his firm, you should receive compensation if they violate that trust. The Missouri Supreme Court says that stockbrokers owe their customers a fiduciary duty:
This fiduciary duty includes at least these obligations: to manage the account as directed by the customer’s needs and objectives, to inform of risks in particular investments, to refrain from self-dealing, to follow order instructions, to disclose any self-interest, to stay abreast of market changes, and to explain strategies
State ex rel Paine Webber v. Voorhees (Mo. banc. 1995)
So if your broker puts his own interests ahead of yours, and does not manage your account according to your needs and objectives, or fails to inform you about risks in your investments or to explain his strategies, then he may have breached his duties as a fiduciary and you may have a case against him.
The Law Office of Jared A. Rose has experience fighting and winning cases for investors. We recently won a $776,462 award along with attorney Diane Nygaard on behalf of an elderly investor. The investor had placed his trust in Ameriprise and one of its brokers, and an arbitration panel found that Ameriprise had breached its fiduciary duties to the investor by selling him variable annuities and non-publicly traded REITs that generated large fees and commissions for Ameriprise and its broker but did not serve the investor’s best interests.
The Law Office of Jared A. Rose will also pursue claims against employers who fail to fulfill their duties when managing their employees’ 401(k) plans. Your employer has an obligation to provide prudent investments for employees to select from, and if your employer has failed to provide reasonable investment options, and if your are stuck with high fees and expenses in your 401(k) plan, then you may have a claim.