Investment advisors play a crucial role in helping clients manage their financial assets. However, sometimes clients may have complaints about the services or advice provided by their financial advisor. This article provides an overview of common complaints against investment advisors and resources for how to resolve them.
Types of complaints against financial advisors
Common complaints may involve issues like: poor investment performance, high fees, inadequate risk disclosure, conflicts of interest, unauthorized trading, misrepresentation about products or credentials, unsuitable investment recommendations, and poor customer service.
Where to file a complaint against an advisor
If you have a complaint against your financial advisor, the first step is to contact the advisor or their supervisor. If that does not resolve the issue, you can file a complaint with regulatory organizations like a state securities regulator, the SEC, or FINRA.
Seeking compensation for losses
In some cases, clients may be able to recover financial losses through arbitration or lawsuits if an advisor committed fraud or violated industry regulations. Consulting an attorney can help evaluate options.
Tips for avoiding issues with advisors
Working with properly registered advisors who clearly communicate their fees, services, conflicts of interest and disciplinary history can help avoid potential issues down the line.
Dealing with complaints against financial advisors often starts by contacting the advisor or firm first and then regulatory organizations if needed. Understanding common issues to watch out for can help investors select and monitor advisors carefully.