Saving and investing money, whether you intended it for retirement, a nest egg or your child’s education, is a smart financial move. Investing often means taking a risk with that capital in order to earn a high rate of return. Unfortunately, the unprofessional behaviors of others can impact the value of your savings or investments.
Working with a professional trader or financial adviser is meant to help you make better decisions. When a financial professional makes mistakes that cost you a significant amount of money, you may have legal rights to hold them accountable for that failure. You may even have grounds to file a civil lawsuit and recoup your losses.
When is a financial professional liable for your losses?
Specifically, if the situation in which you lost money involves a breach of your financial adviser’s fiduciary duty to you, that could be grounds for a lawsuit. Fiduciary duty requires that financial professionals put the interests of their clients before their own.
Similarly, if you can prove that professional negligence played a role in your loss, that could also be grounds to take legal action. Negligence can mean anything from failing to follow through on a promise to buy or sell a particular holding or the failure to perform due diligence before investing the capital of clients in a stock, fund or another instrument.
Standing up for your rights starts with knowing them. Talking to an attorney who understands the complex world of securities law and litigation can help you determine if you have grounds for a civil lawsuit against the financial adviser who cost you so much money.