Breach of Fiduciary Duty

To help you identify when a stockbroker/financial advisor has breached his or her fiduciary duty, take a look at the New York Stock Exchange publication, Content Outline for the General Securities Registered Representative Examination (Test Series 7)  It describes the advisor’s critical functions and tasks.  This publication was recently updated in a way much more favorable to Wall Street. One of the most frequently litigated issues is whether a stockbroker/financial advisor has a continuing obligation to monitor investments that the advisor recommended.  In other words, is the advisor obligated to stay current?  Is the advisor obligated to tell you when negative news may impact your investment?  The marketing literature would suggest that such an obligation not only exists, but advisors want investors to believe that monitoring investments is a very basic service.  Unfortunately, the advisor’s attorneys are likely to argue that no such duty to monitor exists, unless it is spelled out in a contract.