Can I sue my broker even if he did not misrepresent anything?
Yes. It is a common misconception of investors who have suffered losses as a result of relying on the advice of their stockbroker that their broker must have deceived them in some way for their losses to be recoverable. That is simply not the case. FINRA has established detailed conduct rules for brokers and their brokerage firms, which set forth standards of conduct with which brokers and their firms must comply. Those rules require, among other things, that brokers get to know their customers, including their financial status, investment objectives, and risk tolerance, and to recommend only those investments which are consistent with their client’s profile. The failure of a broker or brokerage firm to comply with these securities industry rules can be the basis of a negligence claim against the broker and his firm.
