Posted On: November 24, 2011 by Law Offices of Ralph Behr

A Lifetime of work and sacrifice is, in finance, distilled to a ledger entry. If you maintain an account with a South Florida securities dealer, a stockbroker or investment counselor, it matters who you trust: so know how to decide whom you can trust. Ask your stocker broker/ financial advisor questions: are you with a firm or are you working alone? Are your accounts supervised by a compliance program? Whose program? Does he/she have an active compliance program or is it done by his/her firm? Is there outside compliance? If I file a claim for stockbroker fraud and win at a FINRA hearing who pays? Historically when yields are low (look at a treasury bill yield) and the pressure is on stockbrokers to produce income and profits, they take risks.

Risk for higher yields is like speeding: most speeders crash or get caught, it is only time that separates the speeders from the convicted. If you live in South Florida and have your investments with a stockbroker who is “solo” then ask the questions. If your stockbroker has placed your assets in high risk securities it is very important that you protect yourself by doing the following:
1. Make sure your risk profile, risk tolerance, is clearly spelled out in the documents you signed when your account was opened. If it has been more than five years or you are transitioning from productive years to harvest years make sure your broker’s paper work clearly states your risk tolerance.
2. READ YOUR STATEMENT every month: if you don’t then you can’t complain, silence can be construed to be consent if an investment in your account tanks and you didn’t object in a timely manner. Before you move on to Amazon or Google re-read the Securities Act of 1933….handily reproduced for your review below….it is very relevant to YOUR purchases and trades in securities. By doing this you will be secure in knowing that your money is better invested, productive and safer.

Securities Act of 1933
Often referred to as the "truth in securities" law, the Securities Act of 1933 has two basic objectives:
• requires that investors receive financial and other significant information concerning securities being offered for public sale; and
• prohibits deceit, misrepresentations, and other fraud in the sale of securities.

Have you been suspecting that your financial advisor doesn’t have the right information for your benefit? Or that he or she may have misrepresented a product they sold you?

Some financial advisors know what they are selling you, but may not always give you complete or full disclosure about the product you purchased. Other financial advisors do not have the information you need because they fail to ask the right questions to get you the answers you are looking for.

No matter whom you purchase securities from in Aventura, Boca Raton, Fort Lauderdale or Weston. The financial advisor and or the agency owe you a duty to explain and inform you of what you purchase. If you buy a car, you expect it runs, if you buy a refrigerator you expect it cools. Why not expect the answers for questions about your investment?

Your money future is important to you and should be to whomever you invest it with. If you suspect a fraudulent transaction or misrepresented product, do not hesitate to call a securities attorney that can help you find answers you may need to start your claim. Remember this “to error is human but to defraud is criminal.” Call my office if you have any concerns about your investment choice.