Valenti Hanley PLLC

Legal Issues Blog

4 signs that you need to walk away from a financial advisor

Trying to find a good financial advisor is a difficult task. Many people narrow down their search by deciding to work with someone only after receiving a recommended from a trusted friend or family member. Listening to this advice is a good start but you should also pay attention to how the advisor interacts with you.

No matter who referred the person to you, it is imperative that you watch for signs that you might not be working with the person who is best for your situation. Here are a few signs to watch for:

  • The financial advisor talks down to you or ignores your spouse: You, and your spouse (if you have one), are an important part of the team handling your investments. If the person doesn't respect one or both of you, they probably aren't a good fit for you.
  • Your phone calls or emails aren't returned in a timely manner: Even if you are contacting them often, they should still reply to you. If you notice that you are waiting an unreasonable amount of time or simply aren't getting a reply at all, the advisor likely isn't someone with whom you should entrust your financial future.
  • You notice they are concerned solely with their own gain: Financial advisors do have to make a living, but that should be done by making sure you are working toward your financial goals. One sign that a person is out for their own interests is that they are being overly pushy about specific products or are suggesting things that just don't fall in line with your portfolio or style.
  • The advisor doesn't speak up: While it is true that it is your money, the advisor is the professional. They should say something if they think that you aren't making the best decisions for your money. You do have the right to refuse to follow the advice but all available options should be presented so that you have as much information as possible.

Securities laws must be followed exactly

Securities laws are very strict, and that is for the protection of the investors. Brokers and others who are involved in the industry must ensure that they are acting in their clients' best interests and not trying to further their own gains.

If you are accused of mismanaging client funds or other illegal behavior, you must ensure that you are reacting appropriately. You can't let your anger get the best of you. Instead, you need to be proactive and get started on a defense plan. Don't try to hide things or cover things up because you can face increased troubles if you aren't being fully transparent; however, make sure that we are by your side if you must speak with investigators or handle anything related to the matter.

4 most common business disputes: what can you do to avoid them?

Conflicts are part of doing business. People do not always agree on what is best for a company. If you own a business, you should consider the following common business disputes and how you can prevent them from happening to you:

1. Partner disputes- Partner disputes are the most common type of dispute. These disputes generally occur when partners disagree about the future of their business. Other common issues between partners involve distributing profits, hiring candidates, selecting leadership, allocating responsibilities, choosing investments and making other financial decisions for the company.

What are some signs that my financial planner is up to no good?

One of the reasons people let financial planners manage their investment portfolio is because they believe that they're trustworthy as they're licensed by the state. They often belong to professional organizations that have high ethical standards that they must meet as well. There are always bad apples in the bunch, though. If they take certain courses of action or exhibit questionable practices, you may want to reconsider your decision to work with them.

If your financial planner promises that they have unique expertise that will help them get a leg up on the market, then this should raise some concern. Those who know the market have become adept at the pricing of securities and when new information drops, it often spreads fast. Markets tend to adapt quickly to changes. It's very difficult for any one planner to gain unique insight that another hasn't heard already.

Disclosures provide vital information about financial advisers

Trying to decide on a financial adviser is a huge undertaking. You need to make sure that you find one who can work with your style and who has your best interests in mind. Unfortunately, there are some that are only out for their own financial gain, which can harm your finances.

There are many things that you can look into when you try to find a new adviser. One of these is the disclosures that they should provide. The firm they work for should release details about the fee schedule, company background, adviser conduct and services offered. This general information is a good start, but you will need to dig deeper.

Don't stand for unethical behavior from your advisor

As an investor, you count on your advisors to do things that are in your best interest. You certainly don't think that they are going to be acting selfishly with your money. When you do find out that they aren't behaving in an ethical manner, you need to take action. We can represent you in situations like this.

We realize that this is your money that someone is affecting. You count on these investments to secure your future and grow your net worth. When the advisor you trusted with these assets is messing them up because they want to make more money off of you than what you expect them to, you need to do something quickly.

Regulatory investigations must be handled carefully

When your company is being investigated for regulatory violations, it is imperative that you make a plan for handling the matter. You shouldn't do anything that could incriminate the company and you need to ensure that everyone is acting in a reputable and lawful manner.

One thing that you need to emphasize if you think that you might be under investigation or that one is forthcoming is that no evidence can be destroyed. Documents can't be fabricated or altered in any manner. If anything is changed or destroyed, criminal charges could be levied.

We represent either side of a securities case

Laws related to investments and securities must be complied with to protect the investors and to keep the brokers honest. When the laws aren't followed, the brokers may face criminal action and the investors are left to try to pick up the financial pieces.

We understand both sides of these investment and securities cases. We don't want to see investors lose money, but we don't like to see brokers who are facing charges for crimes they didn't commit. We can work with people on these matters by working through the case piece by piece.

Are the securities you're purchasing protected by Blue Sky law?

As savvy investors know, before investing, potential investors should review the investment for viability and suitability. But how can investors trust the information regarding the investment? One way to verify legitimacy is to see if the securities are registered with Kentucky's Securities Division in accordance with Blue Sky laws.

Warning Signs Of Broker Fraud

You count on an investment broker to not only safeguard your investments but to grow them into a comfortable nest egg for your retirement or other monetary goals. Partnering with a well-known brokerage firm with an excellent reputation seems like a great way to leverage your savings into something more substantial.

However, despite the great trust that investors across the United States place in their brokers, some investment accounts are irreparably damaged by investment fraud. Perpetrated by the exact individuals they trusted so much, the unfettered access investors gave brokers to their portfolios can easily turn into securities fraud. 

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Valenti Hanley PLLC
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Suite 1950
Louisville, KY 40202

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