National investment loss lawyers KlaymanToskes is investigating brokerage firms and financial advisors who unsuitably recommended investments in Hongkong and Shanghai Banking Corporation (“HSBC”) Contingent Income Barrier Notes to their customers. Our firm believes many investors may have been misled regarding the risks and underlying volatility associated with HSBC’s structured note investment offerings, and other recommendations to invest in structured notes.
KlaymanToskes is investigating brokerage firms and financial advisors who recommended the following HSBC structured note investments:
If your financial advisor recommended an unsuitable Structured Note or Variable Interest Rate Structured Product (VRSP) based on your investment profile, or disregarded your risk-tolerance when making investment recommendations, you may be entitled to a financial recovery through FINRA arbitration.
If you suffered losses in HSBC Contingent Income Barrier Notes, or in any other structured note investments due to unsuitable recommendations by your brokerage firm or financial advisor, contact securities attorney Lawrence L. Klayman to discuss your recovery options at (888) 997-9956 or lawrence@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you. Investors with self-directed accounts who did not rely on the advice of a financial advisor are not eligible for our representation.
Structured notes, such as HSBC’s Contingent Income Barrier Notes, are “hybrid” investments, combining a bond and a derivative to offer principal protection and potential upside linked to specific assets’ performance. These assets could include stocks, interest rates, or commodities, with structured notes commonly tracking equity indexes, baskets of stocks, or currency values. Investors are often drawn to structured notes for their high gain potential. However, these investments come with a high degree of risk, potentially leading to the total loss of principal.
Structured notes, with their inherent complexity, may not be suitable for every investor, particularly those seeking consistent income or principal protection. The illiquid nature, market risk, and default risk associated with structured notes, compounded by their complexity, make them volatile and high-risk, particularly when the underlying derivative faces market volatility. If the issuer of a structured note defaults, investors may lose their entire investment.
Limited Liquidity: Many structured notes come with lengthy maturities and lack a vibrant secondary market, potentially complicating efforts to liquidate the investment before its maturity.
Credit Risk: Returns and principal protection on structured notes are often contingent on the credit standing of the issuing bank, posing a risk if the issuer encounters financial troubles.
Market Risk: The note’s return is linked to the performance of its underlying asset, which means investors may face partial or total loss of their investment if the asset underperforms.
Complexity: Structured notes’ complexity may lead to misunderstandings and investment choices that misalign with an investor’s financial objectives and risk appetite.
Financial professionals and their firms have a fiduciary duty to recommend suitable investments that are in their customer’s best interest. Potential conflicts of interest may arise when issuers incentivize brokers/investment advisors with substantial commissions to promote their financial products. A representative that recommends investments for the purpose of being compensated through increased commissions, and enriches themselves rather than benefiting the client, is violating securities laws.
If you’ve suffered losses in structured note investments due to misconduct, fraud, and/or securities violations by your brokerage firm or financial advisor, you may be entitled to financial recovery through FINRA arbitration.
As an investor, there are signs that you should look out for if you believe you have a claim against your broker/advisor for unsuitable investment recommendations in structured notes. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you purchased unsuitable HSBC Contingent Income Barrier Notes, and/or any other structured notes through your financial advisor/brokerage firm, and suffered significant losses, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you. Investors with self-directed accounts who did not rely on the advice of a financial advisor are not eligible for our representation.