National investment loss lawyers KlaymanToskes believe in the importance of investor education – specifically the understanding of a potential securities violation when something in your portfolio doesn’t seem right.
If you’ve ever felt that your financial advisor recommended a product or service that wasn’t right for you, you’re not alone. Broker-dealers are legally required to act in your best interest when making recommendations. This obligation is known as Regulation Best Interest (Reg BI), established by the U.S. Securities and Exchange Commission (SEC) and enforced by the Financial Industry Regulatory Authority (FINRA).
Reg BI was designed to enhance investor protection by ensuring that broker-dealers prioritize your needs over their own financial interests. However, despite these regulations, many investors continue to experience breaches of this duty.
If you believe your advisor has violated Reg BI, KlaymanToskes can help you understand your rights and the steps you can take. Contact securities attorney Steven D. Toskes to discuss your legal options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation.
Reg BI requires broker-dealers and their associated persons to act in the best interest of retail customers when making recommendations regarding securities transactions or investment strategies. This includes recommendations to buy, sell, hold, or exchange securities, as well as advice on account types or transfers between accounts. The rule aims to align the standard of conduct with retail customers’ reasonable expectations and to reduce the potential harm from conflicts of interest. (SEC.gov, FINRA.org)
According to the SEC, broker-dealers must comply with the following four key obligations:
If your advisor’s recommendations or actions have raised concerns, it’s possible they may have breached their obligations under Regulation Best Interest (Reg BI). Signs you may have experienced a Reg BI violation include, but are not limited to:
Violations of Reg BI are often paired with negligence, breach of contract, or violations of other securities laws. If you believe your advisor has breached their duty under Reg BI, consider taking the following steps:
Regulation Best Interest is designed to protect investors by requiring broker-dealers to act in your best interest. If you suspect your advisor has violated this duty causing you investment losses, it’s important to act quickly. Contact securities attorney Steven D. Toskes to discuss your legal options at (888) 997-9956 or investigations@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.