Brokers and brokerage firms have an obligation to recommend only “suitable” investments when they make a recommendation to any investor. In order to be suitable for an investor, an investment must be consistent with an investor’s profile, including their investment objectives and risk tolerance. Otherwise, the investment (and the recommendation of that investment) is deemed to be unsuitable.

When making an investment recommendation, brokers and brokerage firms must consider an investor’s profile, which includes the investor’s:

  • Risk Tolerance
  • Investment Objective
  • Net Worth
  • Tax Considerations
  • Income Needs

For example, if your risk tolerance is low, and your broker recommends a high-risk security such as a complex structured product or a Regulation D private placement, that could be considered an unsuitable investment. If you live on a fixed income and you need a steady cash flow, but your broker recommends securities that do not provide monthly cash flow, that could be considered an unsuitable investment. Click here to view our video from partner Jeffrey Kaplan discussing unsuitable investments.

As an investor, it may be difficult to tell if you have been the victim of unsuitable investment recommendations or securities fraud. If you lost money in what you believe to be an unsuitable investment, contact the attorneys at Dimond Kaplan & Rothstein, P.A. We represent investors throughout the United States and Latin America whose brokers and brokerage firms have given them unsuitable investment advice. Contact us to schedule an appointment or consultation today.

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Miami Office
Grand Bay Plaza
2665 S. Bayshore Drive
Penthouse 2B
Miami, FL 33133
Telephone: 786.628.8236

Los Angeles Office
Available by Appointment
2029 Century Park East
Century Plaza Tower
Suite 400N
Los Angeles, CA 90067
Telephone: 424.544.7930

New York City Office
Available by Appointment
14 Wall St, 20th Floor
New York, NY 10005
Telephone: 917.382.5217

West Palm Beach Office
Northbridge Centre
515 N. Flagler Drive, Suite P-300
West Palm Beach, FL 33401
Telephone: 561.475.2887

Detroit Office
41000 Woodward Avenue,
Suite 350 East
Bloomfield Hills, Mi 48304
Telephone: 248.368.0182