Introduction
When you invest through a respected bank or registered investment advisor (RIA), you expect them to act in your best interest — not theirs. Unfortunately, even large, reputable institutions sometimes push unsuitable investments, make misleading promises, or fail to manage your portfolio with reasonable care.
When this happens, you may have the right to recover your losses through FINRA arbitration, litigation, or a negotiated settlement.
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Common Ways Major Institutions Let Investors Down
Recommending Unsuitable Investments
Advisors must recommend products that match your age, risk tolerance, financial goals, and investment experience. When banks or RIAs push high-risk or illiquid investments — like certain private placements, structured notes, or complex alternatives — just to earn bigger commissions, that’s a red flag.
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Misleading or Incomplete Disclosures
Many investors are sold products under false or incomplete information: they’re told an investment is “safe,” “conservative,” or “income-generating” when the reality is much riskier.
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Failure to Supervise or Invest Idle Cash
Some institutions negligently leave large amounts of client funds in cash or sweep accounts, earning minimal returns — while still collecting fees as if they’re actively managing your money. This can cost you real growth over time.
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Conflicts of Interest and Commissions
Sometimes the bank or RIA’s “recommendation” is motivated by incentives that don’t benefit you — such as undisclosed commissions, revenue-sharing agreements, or in-house product quotas.
Who May Be Liable?
You may have a claim against:
• Banks (e.g., Santander, Wells Fargo, UBS, Merrill Lynch)
• Broker-dealers that fail to supervise their advisors
• Registered Investment Advisers (RIAs) who breach fiduciary duties
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What You Can Do
If you suspect you were sold an unsuitable product or your advisor misled you:
Gather your statements — look for investments that don’t match your goals.
Document what you were told — any emails, texts, or notes from calls help.
Act quickly — claims are often subject to strict deadlines, including FINRA’s six-year rule.
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Why Work With a Securities Lawyer
Cases involving large institutions require deep knowledge of:
• FINRA arbitration rules
• SEC and state fiduciary duties
• How banks structure and sell investment products
An experienced securities lawyer can evaluate your claim, estimate potential recovery, and negotiate or litigate on your behalf.
Contact Us
If you believe you’ve suffered losses because your bank or RIA put their profits ahead of your interests, we’re here to help. Contact us for a free, confidential case review.
