In a recent development, a customer dispute has been filed against Francisco Landivar, a broker and investment advisor associated with UBS Financial Services Inc. (CRD 8174) in Puerto Rico. The allegations, which are currently pending, revolve around the suitability, concentration, and misrepresentation of investments in Puerto Rico closed-end funds.
According to the disclosure, the claimant alleges that the investments in question were unsuitable for their financial situation and were over-concentrated in their portfolio. Furthermore, the claimant contends that these investments were misrepresented as safe, despite the inherent risks involved. The time frame of the alleged misconduct has not been specified, and the damage amount requested remains undisclosed at this time.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Francisco Landivar and UBS Financial Services Inc. in relation to this customer dispute. With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses through FINRA arbitration. They offer free consultations to affected clients and operate on a “No Recovery, No Fee” basis. Investors can reach them toll-free at 1-888-885-7162 or visit their website at https://investmentfraudlawyers.com/.
Understanding the Allegations and FINRA Rules
Table of Contents
The allegations against Francisco Landivar center around three main issues: unsuitability, over-concentration, and misrepresentation of investments. Let’s break these down:
1. Unsuitability: FINRA Rule 2111 requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on their investment profile. This profile includes factors such as age, financial situation, investment objectives, and risk tolerance.
2. Over-concentration: While there is no specific FINRA rule addressing concentration, the suitability rule implicitly requires brokers to consider the concentration of investments in a customer’s portfolio. Over-concentration in a single security, sector, or geographic area can expose investors to excessive risk.
3. Misrepresentation: FINRA Rule 2020 prohibits brokers from making false or misleading statements about investments. Brokers must provide accurate and complete information to their clients, allowing them to make informed decisions.
If the allegations are proven true, Francisco Landivar and UBS Financial Services Inc. may be found to have violated these FINRA rules, which could result in disciplinary action and potential investor remedies.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Forbes article, some common red flags of investment fraud include promises of guaranteed returns, pressure to make quick decisions, and lack of transparency about fees and risks.
The Importance for Investors
This case highlights several critical issues that investors should be aware of when working with financial advisors and investing in complex products like closed-end funds:
Suitability of Investments
Investors should ensure that their financial advisor understands their unique financial situation, investment goals, and risk tolerance. Advisors must recommend investments that align with these factors, rather than prioritizing their own interests or those of their firm.
Concentration Risk
Over-concentration in a single investment, sector, or geographic region can amplify potential losses. Investors should be cautious of portfolios that are heavily weighted in one area, as this can indicate a lack of proper diversification.
Misrepresentation of Risk
Investors rely on their advisors to provide accurate and complete information about potential investments. Misrepresenting the risks associated with an investment can lead to uninformed decision-making and unexpected losses.
By understanding these issues, investors can better protect themselves and make more informed decisions when working with financial advisors.
Recognizing Red Flags and Seeking Help
Investors should be vigilant for warning signs that may indicate misconduct by their financial advisor. Some red flags to watch for include:
- Recommendations that seem inconsistent with your investment goals or risk tolerance
- Pressure to invest in a particular product or make quick decisions
- Lack of transparency about fees, commissions, or potential risks
- Unexplained or excessive trading activity in your account
Recovering Losses through FINRA Arbitration
If an investor believes they have suffered losses due to the misconduct of their financial advisor or brokerage firm, they may be able to recover damages through FINRA arbitration. This process allows investors to seek compensation without going to court, often resulting in faster and more cost-effective resolutions.
Haselkorn & Thibaut, with their extensive experience and successful track record, can guide investors through the FINRA arbitration process and fight for their rights. Their team of skilled attorneys works tirelessly to help clients recover their losses and hold wrongdoers accountable.
Free Consultations and Contingency Fees
For investors who suspect they may have been victims of financial advisor misconduct, Haselkorn & Thibaut offers free consultations to discuss their case. During this consultation, an experienced attorney will review the facts of the case and provide guidance on the best course of action.
Additionally, Haselkorn & Thibaut works on a contingency fee basis, meaning they only collect a fee if they successfully recover losses for their clients. This “No Recovery, No Fee” policy ensures that investors can seek justice without worrying about upfront legal costs.
As the case against Francisco Landivar and UBS Financial Services Inc. unfolds, investors should remain vigilant and proactive in protecting their rights. By staying informed and seeking the help of experienced professionals like those at Haselkorn & Thibaut, investors can work towards recovering any losses and holding those responsible accountable for their actions.
