Failure to Diversify
Broker-dealers and investment advisers are required to make suitable investment recommendations based on an investor’s age, financial condition, risk tolerance, investment objectives, and sophistication. In order to act in the best interest of investors, broker-dealers are required to avoid over-concentrating portfolios in unsuitable securities, groups of securities, or asset classes. Failing to do so increases risk of loss and is not in the best interest of the investor.
If you have incurred losses due to a broker-dealer or investment adviser failing to adequately diversify your investment portfolio, contact the securities attorneys at Rosenberger + Kawabata.