Q: Does my financial adviser have a duty to inform me if he suspects that an investment may not be in my best interest?
Breach of fiduciary duty claims in New York can be difficult to litigate. First, state law only imposes this higher level of trust between the parties in certain circumstances. Second, calculating the statute of limitations for such a claim is not straightforward. If you suspect that you might have a claim for breach of fiduciary duty, it is therefore vital that you seek the guidance of an experienced New York business litigation lawyer right away.
Financial advisers and their clients are an example of the type of relationship in which New York courts have found that a higher level of trust exists. For example, clients recently filed suit against an asset management company that failed to inform its clients of its suspicions relating to their investments in Bernie Madoff’s firm. Madoff was later found guilty of operating a Ponzi scheme. The alleged losses total more than $227 million.
Clients must have a higher level of trust with their financial adviser when handing over control of their assets. As a result, the adviser may be held to a higher standard of duty than the average person. If the relationship between you and your financial adviser:
- calls for a higher level of trust
- involved misconduct of some kind by your adviser
- involved damages that you suffered as a direct result of that misconduct,
then your financial adviser may have committed a breach of fiduciary duty in New York.
For more information about fiduciary duties and relationships, contact a New York breach of fiduciary duty attorney at (888) 497-3410 for a consultation.