Investing in complex and alternative investments can be both lucrative and risky, especially when you rely on advice from a broker or financial advisor. Whether you’re considering such investments or dealing with losses, understanding your rights and responsibilities is crucial. At Malecki Law, our securities law attorneys are here to help you understand your rights and pursue claims against those responsible for your losses.
What Is an Alternative Investment?An alternative investment refers to financial assets that fall outside the realm of traditional investments, such as stocks, bonds, or cash-investment products. These investments often include non-traditional asset classes such as real estate, private equity, hedge funds, commodities, and venture capital.
Alternative investments are often sought for their potential to deliver high returns and diversify portfolios. However, they also come with unique risks, including illiquidity, high fees, and a lack of regulatory oversight compared to traditional investments.
What Are Some Examples of Alternative Investments?Examples of alternative investments include:
These investments often require significant due diligence and carry risks that may not be immediately apparent to the average investor.
What Must My Broker Do Before Recommending an Alternative Investment?Brokers and financial advisors are obligated to adhere to strict regulatory standards when recommending alternative investments. Under FINRA’s suitability rule and Regulation Best Interest (Reg BI), brokers must:
Failing to meet these obligations can result in financial losses for investors and liability for brokers or their firms.
What Should I Do if I Have Experienced Losses in Alternative Investments Recommended By My Broker?If you believe your broker’s recommendation of an alternative investment resulted in significant financial losses, it’s essential to take action:
Malecki Law has extensive experience representing investors in cases involving complex and alternative investments. Our attorneys understand the nuances of these asset classes and are dedicated to helping you recover losses caused by broker misconduct. If you’ve suffered losses in alternative investments, contact Malecki Law at (212) 943-1233 for a consultation. Let us advocate for your financial future and ensure those responsible are held accountable.