Simply put, a fiduciary duty is an agent’s duty to his client’s interest in front of his own. Stockbrokers and investment advisors may owe a fiduciary duty to their clients, which could include the obligation to disclose all material information (such as the stockbroker’s or investment advisor’s personal interest in the transaction, commission, fee) to the client, and only make recommendations that put the clients’ interest first. Fiduciary duty is typically found in cases where the broker has discretionary control over the account, or the broker is also a registered investment advisor.
These obligations might be violated when, for example, the stockbroker advances his own interests and /or the interests of his firm over the interests of their client, or does not make full disclosures to his clients. Federal and state courts and arbitration panels have imposed liability on stockbrokers for failing to adhere to these duties.
If you believe that you have been a victim of securities fraud, including a breach of fiduciary duty, you have certain rights which you should be aware of, rights which may provide you an opportunity to recover your losses from your stockbroker or brokerage firm.
At Loya & Associates we can help. Loya & Associates represents victims of securities fraud. Please call or email us today.