Is Your Broker Living Up To Their Fiduciary Duty?


In an investment context, fiduciary duty means that a broker or other representative has been trusted to make investment decisions on behalf of someone else. Fiduciary duty implies a higher level of responsibility than that inherent in a typical investor-broker relationship, and it involves keeping the investor’s interests above those of the broker.

Whether a broker has a fiduciary duty to an investor will depend on the nature of the relationship. In some situations, brokers are given license to invest money on behalf of clients who may be elderly, infirm or young, or who may be in a personal friendly relationship (or pretend to be in such a relationship) with him or her.

A broker may be held to a fiduciary standard — a high standard with specific rules and regulations — under certain circumstances such as:

  • When a client has a discretionary account — when a broker has discretion to trade an account without the authorization of his or her client
  • When a broker has power of attorney for a client
  • When the client is elderly or infirm

When A Broker Has Failed To Meet Industry Standards — And An Investor Has Suffered Loss

If you (or someone you know or represent) have suffered investment losses that may be attributed to broker negligence, an experienced securities attorney can help you pursue an appropriate course of action. Timothy J. Dennin, P.C., may be able to help you recover money in cases where a broker was required to follow industry standards but didn’t.

With over 25 years of experience focused on representing the rights and interests of investors, seasoned litigation and arbitration, attorney Timothy J. Dennin has won many cases against powerful opponents. Equipped with an outstanding knowledge of relevant laws and industry standards, and an exceptional track record, Mr. Dennin can represent you powerfully in your pursuit of justice and fairness.

A Law Firm Dedicated To Protecting Investors’ Rights

While numerous industry rules apply to brokers, who are obligated to adhere to FINRA’s code of conduct, proving the existence of a fiduciary relationship can be difficult — and it should not be undertaken by an inexperienced lawyer.

New York broker fiduciary duties attorney Timothy J. Dennin can answer your questions during a free consultation. Contact the firm by calling 866-437-9475 in Northport to learn more.