Breach of Fiduciary Duty

Breach of Fiduciary Duty: Holding Brokers & RIAs Accountable

When you trust a financial professional with your investments, you have the right to expect that they will act solely in your best interest. Unfortunately, breaches of fiduciary duty by brokers and registered investment advisors (RIAs) are common occurrences that can result in substantial financial harm. At Iorio Law PLLC, we are dedicated to helping investors nationwide recover losses caused by fiduciary misconduct through aggressive and strategic representation in securities arbitration and litigation.

What Is Fiduciary Duty?

A fiduciary duty represents the highest standard of care legally imposed upon financial professionals. This duty requires them to prioritize the investor’s interests above their own, act transparently, avoid conflicts of interest, and disclose all material information clearly and comprehensively. Both brokers, under certain circumstances, and RIAs, under all circumstances, may owe investors fiduciary duties.

Fiduciary Duty for Brokers

Traditionally, brokers are held to a “best interest” standard as defined by Regulation Best Interest (Reg BI). However, in specific scenarios—particularly when brokers exercise discretionary authority or control over investor accounts—they may owe their clients fiduciary duties.

Fiduciary Duty for Registered Investment Advisors (RIAs)

RIAs are always held to a fiduciary standard. They must consistently act in their clients’ best interests, avoiding conflicts and transparently disclosing all relevant information about investment strategies and products. Violations by RIAs commonly include:

• Failing to disclose all fees, commissions, and hidden costs.
• Recommending risky or complex financial products without full disclosure.
• Overconcentrating portfolios in unsuitable investments.
• Misrepresenting or omitting critical information about investment risks and returns.
• Using client funds for their personal benefit or misappropriating assets.

Signs of Fiduciary Duty Violations

Identifying breaches of fiduciary duty early can protect your financial future. Common red flags include:

• Investments not matching your stated goals or risk tolerance.
• Unexpected losses or volatility that your advisor downplayed or failed to disclose.
• Excessive trading that generates high commissions without benefit to you.
• Difficulty obtaining straightforward explanations about your investments or advisor’s actions.
• Investments that significantly benefit your advisor or broker at your expense.

How Fiduciary Violations Impact Investors

Breaches of fiduciary duty can have severe and lasting consequences, including:

• Significant financial losses and diminished portfolio value.
• Emotional distress from financial instability and broken trust.
• Tax consequences resulting from inappropriate trading activities.
• Missed opportunities due to improper investment advice.

Proven Advocacy to Recover Your Investment Losses

At Iorio Law PLLC, we have successfully helped investors across the United States hold financial professionals accountable for breaches of fiduciary duty. Our founder, August M. Iorio, brings over 15 years of experience in securities arbitration, successfully recovering nearly $100 million in investor losses. Our strategic approach includes:

• Comprehensive Case Evaluation: A detailed, no-cost review of your investments and circumstances to determine if fiduciary misconduct occurred.
• In-Depth Investigation: Meticulous analysis of brokerage statements, financial disclosures, and communications to identify violations.
• Strategic Representation: Expertly navigating the complexities of FINRA arbitration, AAA, or JAMS arbitration forums to pursue maximum compensation.
• Contingency Fee Structure: No upfront legal fees. Our interests are aligned with yours—we only get paid if you recover compensation.

Why Choose Iorio Law PLLC?

• National Reputation: Proven track record, including landmark victories against major brokerage firms and advisory companies.
• Exclusive Investor Advocacy: We never represent brokerage firms or financial advisors; our commitment is exclusively to harmed investors.
• Personalized Approach: Customized legal strategies tailored to your unique situation and objectives.
• Results-Driven: Nearly $100 million recovered for investors through diligent and aggressive advocacy.

Take Action Now

If you suspect that your financial advisor or broker has breached their fiduciary duty, it is critical to act swiftly. Claims involving fiduciary breaches are time-sensitive and governed by strict statutes of limitations and regulatory deadlines.

Contact Iorio Law PLLC today for a free, confidential consultation to explore your legal options. We are dedicated to fighting for your financial recovery and holding fiduciaries accountable.

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Your financial security matters—let us help you reclaim it.