We trust financial advisors to protect what we’ve built. Whether it’s a private banker at a well-known institution or a registered investment adviser (RIA) managing a family’s portfolio, investors expect tailored advice—not aggressive, one-size-fits-all products. When that trust is broken through unsuitable investment recommendations or a breach of fiduciary duty, the financial losses can be significant—and legal action may be appropriate.
At Recalde Law Firm, P.A., we represent investors in Miami and beyond in claims against financial institutions, wealth managers, and advisory firms who failed to put their clients’ interests first.
What Is an “Unsuitable” Investment?
An unsuitable investment is one that doesn’t align with a client’s:
• Risk tolerance
• Investment objectives
• Time horizon
• Liquidity needs
• Financial sophistication
This isn’t just bad strategy—it can be a legal violation. RIAs have a fiduciary duty to recommend investments that are in their client’s best interest. Brokers and hybrid advisors are also bound by Regulation Best Interest (Reg BI), which imposes a similar (though more limited) standard.
Common Examples of Unsuitable Investments
We often see claims involving:
• High-fee structured products pitched to conservative investors
• Illiquid private placements or non-traded holdings recommended without proper disclosures
• Leveraged or inverse ETFs marketed as long-term holdings
• Concentrated stock positions allowed to go unmanaged
• Exotic derivatives or options strategies pushed on retirees or unsophisticated clients
• Undisclosed conflicts of interest, such as proprietary products or revenue-sharing incentives
These products aren’t inherently fraudulent—but when sold to the wrong client, in the wrong context, they can create real harm.
Fiduciary Duty: What Advisors Are Required to Do
Fiduciary advisors (such as RIAs and private wealth managers) are legally obligated to:
• Act in their clients’ best interest
• Disclose material conflicts of interest
• Avoid self-dealing or hidden compensation schemes
• Provide advice that is objective and client-focused
• Monitor and review portfolio performance
When a fiduciary prioritizes commissions, firm incentives, or internal sales targets over the client’s financial well-being, it may constitute a breach of fiduciary duty.
Did the Advisor Follow a Process—or Push a Product?
One of the first things we evaluate in these cases is whether the advisor:
• Documented the client’s risk profile and investment objectives
• Explained the key risks of the recommended product
• Disclosed any conflicts or internal compensation
• Monitored the investment after the sale
• Deviated from model portfolios or strategy without proper consent
If the advisor skipped these steps—or ignored red flags—there may be grounds for litigation, arbitration, or regulatory complaint.
Legal Avenues for Recovery
Depending on the relationship and contract terms, recovery may be available through:
• FINRA arbitration (for broker-dealers or dually registered firms)
• Civil litigation in state or federal court (for fiduciary RIAs or trust companies)
• Mediation or private settlement negotiations
• Regulatory enforcement (disgorgement), typically pursued by government regulators
At Recalde Law Firm, P.A., we work with clients to assess their losses, gather evidence, and pursue claims discretely and strategically—often in coordination with forensic accountants or investment professionals.
Miami Investors Deserve Better
Whether you’re a retiree who lost principal in an inappropriate structured product or a business owner whose assets were steered into illiquid alternative investments, you may have more options than you think.
Our firm helps clients:
• Review portfolios for red flags
• Identify breaches of duty, conflicts, or misrepresentations
• Pursue recovery from institutions and advisors responsible for the harm
Contact Recalde Law Firm, P.A. for a Confidential Case Review
If you suspect your financial advisor or private banker recommended investments that weren’t right for you, reach out to discuss your legal options. We represent investors throughout Florida and beyond in high-stakes financial disputes.
Recalde Law Firm, P.A.
Phone: (305) 792-9100
Email: [email protected]
Recalde Law Firm represents investors in unsuitable investment, breach of fiduciary duty, and financial misconduct claims against banks, RIAs, broker-dealers, and wealth managers.
