You can sue your financial adviser for bad investments

You Can Sue Your Financial Adviser for Bad Investments

With the increasing popularity of 401(k) plans and IRAs, many more of us have become investors — often without any background at all in finance. People owning such accounts must now decide how and where their contributions to these accounts are allocated.
To make better decisions, many of us are seeking the advice of financial advisers. Just like doctors and lawyers, these professionals are required to adhere closely to standards of professional conduct. When the actions (or inactions) of a financial adviser fall short of the “standard of care” for investment professionals, a client can sue for malpractice or fraud.

Investments Must Be Suitable

At the initial meeting, a financial adviser should ask many questions to determine your investment objectives, comfort level, net worth, risk tolerance and age.
The financial adviser is required to use this information to guide you to the types of investments that best suit your needs now and in the future, and to determine the amount of risk that you are comfortable with. An older person who plans to retire in a few years will have a much more conservative profile than a young person with no family obligations who is just beginning to invest.
To meet the test of “suitability,” your portfolio also must be properly diversified in a way that limits risk.

https://www.lawweb.in/2013/10/you-can-sue-your-financial-adviser-for.html