Introduction
When you rely on a bank or registered investment advisor (RIA) to manage your money, you expect their advice to align with your goals and risk tolerance — not their bottom line. Unfortunately, many large institutions fail to disclose safer, more suitable investment alternatives because they’re more focused on earning higher fees or commissions.
This failure can cost you real money — and you may have a right to recover those losses.
How This Happens
A trustworthy advisor should compare all reasonable options that fit your needs. But some banks and brokers intentionally omit lower-cost or lower-risk investments — like U.S. Treasury bills, municipal bonds, or investment-grade fixed income — because they don’t generate enough revenue for the firm.
Instead, they push:
- Structured notes and complex derivatives
- Illiquid private placements
- In-house proprietary funds
- High-commission alternative products
All of which may come with hidden fees, greater risk, or limited liquidity — and bigger profits for the institution.
Examples of Safer Alternatives That Get Overlooked
- Investment-grade corporate or municipal bonds
- U.S. Treasury bills or Treasury bonds
- Low-cost index funds or ETFs
When these are intentionally downplayed or hidden altogether, you may end up taking on more risk than you agreed to.
Why This May Be a Violation
Banks and broker-dealers have a duty to recommend investments that are suitable for you — and to fully disclose risks and conflicts of interest. Registered Investment Advisers (RIAs) have an even stricter fiduciary duty to act in your best interest.
When an advisor puts their commission check ahead of your portfolio safety, that’s a breach of trust that may be actionable.
How to Spot This Problem
- You lost money in a risky product you didn’t fully understand
- You were told “this is your best option” — but never saw any alternatives
- Your portfolio doesn’t reflect your stated risk tolerance
- You feel your advisor minimized or ignored safer strategies
Your Next Steps
- Gather your statements and any communications with your advisor.
- Ask for a breakdown of what other investment options were available at the time.
- Talk to a securities lawyer to see if you have grounds for a claim through FINRA arbitration or litigation.
Why Choose Our Firm
We help investors hold large institutions accountable when they push clients into high-risk or unsuitable products while failing to disclose safer alternatives. We understand how to prove conflicts of interest and recover losses through the right forums.
If you believe you were misled, contact us for a confidential review.
