Suitability & Best Interest

Suitability and Best Interest Claims: Protecting Investors Nationwide

Holding Financial Advisors Accountable for Unsuitable Recommendations

At Iorio Law PLLC, we exclusively represent investors nationwide who have suffered financial harm due to brokers, financial advisors, or brokerage firms making unsuitable investment recommendations or failing to act in their clients’ best interests. Led by August M. Iorio, a leading New York securities arbitration attorney with nearly 15 years of experience and a proven track record of recovering nearly $100 million for investors, our firm is dedicated to protecting your rights and securing the financial recovery you deserve.

Understanding Suitability and Best Interest Standards

Financial advisors and brokerage firms are required by law and regulatory rules to recommend investments that align with their clients’ individual financial situations, investment objectives, and risk tolerance. Two core standards govern these obligations:

1. Suitability Standard: Under FINRA rules, brokers must have a reasonable basis to believe an investment recommendation aligns with the client’s financial situation, objectives, and risk tolerance at the time the recommendation is made.

2. Regulation Best Interest (Reg BI): Effective from June 30, 2020, Reg BI sets a higher standard, requiring brokers to act in the client’s best interest and disclose any conflicts of interest when recommending securities to retail investors. This means brokers must prioritize clients’ financial well-being over their own financial incentives. Key components of Reg BI include:

Disclosure: Brokers must fully disclose material facts about the investment, including costs, risks, and any conflicts of interest.
Care: Recommendations must reflect a careful evaluation of costs, risks, and your specific needs.
Conflict of Interest: Brokers must mitigate or eliminate conflicts—like pushing high-commission products—that could compromise their advice.
Compliance: Firms must establish policies to ensure adherence to these standards.

When financial professionals fail to meet these standards, investors suffer losses that could and should have been prevented.

Examples of violations include:

Pushing high-risk stocks or options on a retiree seeking safety.
Overconcentrating your portfolio in a single stock or sector.
Misrepresenting an investment’s risks or costs.
Excessively trading your account to generate commissions.

These breaches of duty can lead to devastating losses, but securities arbitration offers a path to recovery.

How Suitability and Reg BI Violations Hurt Investors

When brokers ignore suitability rules or Reg BI, the consequences can be severe:

Financial Losses: Unsuitable investments may underperform or collapse, wiping out your savings.
Missed Opportunities: Money tied up in poor recommendations can’t grow elsewhere.
Emotional Stress: Discovering a trusted advisor has misled you adds insult to injury.

Victims are often everyday investors—retirees, families, or individuals—who trusted their broker to act responsibly. If this resonates with you, we can help.

Signs You May Have a Suitability or Best Interest Claim

Unsuitable recommendations and violations of Reg BI can lead to significant financial losses. Common signs that you may have a claim include:

Your portfolio doesn’t match your stated goals (e.g., aggressive trading when you wanted stability).
Your broker downplayed risks or pressured you into investments you didn’t understand.
You’ve suffered unexpected losses that your broker marketed as safe or low-risk, or can’t justify.
You have investments with risks or costs that were not fully disclosed.
Your financial advisor recommended primarily due to high commissions or fees rather than your financial interest.

If you recognize these signs in your portfolio, you may be eligible to recover your losses through securities arbitration.

Real Examples of Suitability and Best Interest Violations

At Iorio Law PLLC, we’ve successfully represented clients nationwide facing various types of unsuitable investments and Reg BI violations, including:

GWG L Bonds: These speculative and illiquid securities were often improperly recommended to conservative investors seeking safety. Attorney August M. Iorio has recovered over $3.5 million for GWG L Bond investors harmed by unsuitable recommendations.
Puerto Rico Bond Crisis: Attorney Iorio helped investors recover over $80 million after broker-dealers improperly recommended highly concentrated positions in Puerto Rico bonds and closed-end funds.

How We Fight for Investors in Suitability and Reg BI Cases

Our strategic, meticulous approach includes:

Free Case Evaluation: Our initial consultation assesses the suitability of your claim at no cost.

Comprehensive Investigation: We meticulously review your account documentation, correspondence, and investment history to build a compelling case.

Aggressive Representation: Leveraging our extensive experience in FINRA arbitration, we aggressively advocate for your interests throughout the arbitration process, from discovery and mediation to final arbitration hearings.

Contingency Fee Representation: We only get paid if you recover. Our interests are fully aligned with yours.

Why Choose Iorio Law PLLC

Proven Track Record: Nearly $100 million recovered for investors nationwide.
Focused Advocacy: We exclusively represent investors, never brokerage firms or financial advisors.
Experienced Leadership: Founder August M. Iorio brings 15 years of securities arbitration experience, successfully handling over 700 cases.
Nationwide Representation: Based in New York, we fight for investors across the U.S.

Take Action to Recover Your Losses

If you believe you have suffered financial harm due to unsuitable investment recommendations or violations of the best interest standard, do not delay. Claims are subject to strict time limits, typically within six years from the date of the transaction.

Contact Iorio Law PLLC today for your free, confidential consultation. We are here to fight for your financial recovery.

📞 Call: (646) 330-4624
📧 Email: info@iorio.law
📍 Location: One World Trade Center, 85th Floor, New York, NY 10007

Frequently Asked Questions (FAQs)

Q: What is the difference between the suitability standard and Regulation Best Interest?
A: The suitability standard requires recommendations to match your financial profile, whereas Reg BI mandates that recommendations must explicitly prioritize your best interest above any broker incentives.

Q: How long do I have to file a suitability or Reg BI claim?
A: Typically, FINRA arbitration claims must be filed within six years of the conduct giving rise to the claim, which may be the date the unsuitable investment was recommended or executed. Contact us for information about your specific situation.

Q: How much does it cost to hire Iorio Law PLLC?
A: Our firm works on a contingency fee basis—no recovery, no legal fees.

Let our experienced investor advocates at Iorio Law PLLC put our proven expertise to work for you. Your fight is our fight—contact us today.

Client Reviews

August Iorio is a wonderful, very competent attorney. He helped me through a very complicated financial situation to a result that benefitted me greatly. He is responsive, efficient, and very accommodating to my personal situation. I highly recommend him.

Christine L.

I was impressed with August Iorio's directness and clarity in explaining the claim process and how it might work out. I also appreciated his promptness in getting back to me when I had questions or other concerns. The law firm is very good at what it does.

Art H.

August Iorio was the lead on our case. His professional demeanor, partnered with his responsiveness to our questions, suggestions, and ideas made us feel as if we were a team with a common goal. He always kept us updated and informed and gave us realistic expectations which resulted in a timely...

EB & SB.

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