Unsuitability

A broker, adviser, and other investment professional has an obligation when making an investment recommendation to a client to only make recommendations that are consistent with a customer’s investment objectives, risk tolerance and needs.  This obligation arises out of the “Know Your Customer Rule” found in NYSE Rule 405 and NASD Rule 2310.  An investment may be unsuitable if: the investment is not in accordance with the customer’s investment objectives; the customer does not have the financial ability to incur the risk associated with a particular investment; or the customer did not know or understand the risk associated with the particular investment.

If you believe your broker, adviser, or investment professional has made a recommendation that is inconsistent with your investment objectives, risk tolerance and needs, contact Stephanie M. Beige at beige@bernlieb.com to discuss your rights.