Attorney Courtney Werning of Meyer Wilson was recently quoted in The Wall Street Journal speaking on the disclosure requirements of investment advisers, or rather the lack thereof.
At Meyer Wilson, we are a nationally recognized investment misconduct law firm. We have secured millions of dollars on behalf of aggrieved investors across the country. Attorney Courtney Werning and the entire team works tirelessly to inform investors about their rights and the requirements of the financial professionals they entrust.
If you have sustained losses due to your broker or investment adviser’s wrongdoing, contact our office at (614) 532-4576 to schedule a free consultation.
As reported by The Wall Street Journal, investment advisers (who now manage over $128 trillion) have fewer disclosure requirements than stockbrokers when it comes to “civil lawsuits, customer complaints, and arbitration claims.” Investment advisers, who are regulated by the United States Securities and Exchange Commission or the states, are only required to disclose what they deem “material” to clients and prospective clients.
When interviewed, Meyer Wilson principal Courtney Werning, noted “I find it a little bit perverse that advisers who are supposedly held to a higher standard of due care and diligence have less disciplinary disclosure requirements than a brokerage firm. That surprised the hell out of me when I found it out not that long ago.” Ms. Werning had recently written a bar journal article highlighting the problems with investment adviser disclosure requirements as they currently stand.
Stockbrokers and brokerage firms, unlike investment advisers, are regulated by the Financial Industry Regulatory Authority (FINRA). They are required to make disclosures regarding customer disputes and other complaints or regulatory actions on the agency’s BrokerCheck website. They do not get to pick and choose what they disclose - there are bright line rules they have to follow.
Investment advisers (fiduciaries), by contrast, are allowed by current regulations to subjectively decide what one of their clients or prospective clients would find material to making a choice about their adviser.
It is generally in your best interest to retain an attorney if you suspect that your investment adviser or stockbroker has violated state or federal law.
An investment adviser (and their employer) may still be held liable for misconduct including breach of fiduciary duty. An attorney can help you understand your rights and your legal options if your financial adviser has abused your trust.
Did your investment adviser fail to disclose material information? Contact our office at (614) 532-4576 to discuss your case with an investor claims attorney today. We offer free, no-obligation consultations.
At Meyer Wilson, we have represented thousands of investors recovering over $350 million in losses. Our team is dedicated to ensuring that our clients receive the best possible outcome on their cases. Do not wait. Call today to discuss your case and determine whether you are eligible to pursue arbitration or file a lawsuit against a liable party.