Misrepresentations

As part of its Fiduciary Duty, brokerage firms are required to tell the truth, and not misstate, misrepresent, or omit important information concerning a customer’s investments.

For example, where a brokerage firm does not adequately disclose the risks of an investment, or omits a fact about the investment that would have altered the customer’s decision to invest, the customer does not have the information necessary to make an informed decision about whether that investment is suitable given their investment objectives and goals.

A financial firm may be held liable for making misrepresentations and omissions of important facts that cause their customers to lose money.