Wednesday, February 28, 2024


Believe it or not, your trusted financial adviser is only human. He or she can make a very costly mistake despite his or her best intentions. Perhaps you have taken comfort in the fact that your adviser, whether a registered representative or an investment adviser representative, has a company with whom they are affiliated. Surely the company has insurance, right? Well, I have more bad news for you – that company might not have an errors and omissions policy either, particularly if they are a small outfit.

Our advice is that you ask to receive a copy of your advisor’s policy at the beginning of your relationship. If your advisor does commit a negligent or even fraudulent act – consult with an attorney experienced in such matters. You may wish to confirm that an insurance policy is in place before you proceed with expensive litigation. And if you are an uninsured adviser that made a mistake, you should seek legal counsel immediately. Food for thought.

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