Investor representation · No defense conflicts

When your adviser, your private bank, or your trust company failed the standard they owed you.

We represent investors in claims against registered investment advisers, private banks, trust companies, multi-family offices, and the wealth management firms whose conduct fell short of the fiduciary or best-interest standard they owed. Our practice is focused, technical, and structured to operate without the industry-defense conflicts that compromise larger firms.

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Conduct We Pursue

The misconduct usually isn't dramatic.

Real investor claims rarely look like Hollywood fraud. They look like a recommendation that didn't match the investment policy statement, a position too concentrated to be prudent, an advertised performance number that wasn't what it appeared to be, or a fiduciary who put the firm's interests ahead of yours. The legal standards are specific, and the violations are often documented in the firm's own files.

Investment adviser fiduciary breach

Breach of the federal fiduciary duty under § 206 of the Investment Advisers Act and corresponding state fiduciary law — including failure to act in the client's best interest, undisclosed conflicts of interest, related-party transactions, soft-dollar abuses, and the unauthorized prioritization of the firm's economics over the client's portfolio.

IA Act § 206 · SEC fiduciary interpretation · State fiduciary law

ii.

Investment Policy Statement & risk-tolerance violations

Account activity inconsistent with the investment policy statement, asset allocation, or risk tolerance the firm itself documented at the outset of the relationship. The discrepancy between what the IPS says and what the actual portfolio holds is often the foundation of a strong claim, particularly where it produced concentration, illiquidity, or volatility the client never authorized.

IPS breach · IA Act § 206 · Fiduciary standard

iii.

Marketing Rule & non-compliant advertising

Investment adviser marketing that violated SEC Rule 206(4)-1 — non-compliant testimonials and endorsements, hypothetical performance presented without required treatment, gross-of-fees performance without net presentation, cherry-picked or selectively-presented track records, and other misleading advertising that induced the investment.

SEC Marketing Rule 206(4)-1 · IA Act § 206

iv.

Private bank & trust company misconduct

Conduct by U.S. and U.S.-affiliated private banks and bank trust departments — including unsuitable concentration in single positions inherited by trust beneficiaries, structured product losses, securities-backed lending failures, FX and currency losses in offshore-affiliated accounts, undisclosed proprietary product steering, and breach of the bank's fiduciary duty to trust beneficiaries.

State trust law · Banking fiduciary duty · IA Act § 206 (where applicable)

Unsuitable recommendations

Investments that did not match the client's stated investment objectives, time horizon, liquidity needs, or risk tolerance — including illiquid alternatives recommended to retirees and trust beneficiaries, leveraged or inverse ETFs held long-term, complex structured products sold to unsophisticated investors, and concentrated positions that no reasonable adviser would have recommended.

IA Act § 206 · FINRA Rule 2111 · Reg BI

vi.

Misrepresentation & omission

Misstatements or omissions of material fact in connection with the recommendation or sale of a security — including misrepresented risk levels, inaccurate yield or return figures, undisclosed liquidity restrictions, mischaracterized fees, and product features the customer was never told about.

§ 10(b) and Rule 10b-5 · IA Act § 206 · FINRA Rule 2020

vii.

Reg BI & broker-dealer best-interest violations

Broker-dealer conduct that prioritized firm or representative compensation over the customer's best interest under Regulation Best Interest, particularly in dual-registrant and hybrid contexts where the adviser switched hats between fiduciary and brokerage capacity without proper disclosure.

SEC Reg BI · Dual-registrant disclosure · FINRA Rule 2111

viii.

Failure to supervise

Claims against advisory firms, broker-dealers, and bank wealth platforms for the firm's failure to supervise the financial professionals whose conduct produced the loss — including inadequate review of customer accounts, failure to follow up on red flags, and inadequate written supervisory procedures and compliance programs.

IA Act compliance rule · FINRA Rule 3110 · State law

We also handle claims involving excessive trading, reverse churning, selling away, and outside business activity — please inquire.

Who We Pursue

Firms, advisers, and the chain of supervision.

Claims are typically brought against the firm, the investment adviser representative or registered representative, and — where appropriate — supervising principals and the supervising firm. The right defendant universe is part of the strategy.

Registered investment advisers

SEC- and state-registered RIAs. Claims proceed in court or AAA/JAMS arbitration depending on the advisory agreement. RIAs owe a federal fiduciary duty under § 206 of the Investment Advisers Act.

ii.

Private banks & trust companies

Domestic and U.S.-affiliated foreign private banks and trust departments whose investment management, fiduciary, or trust administration produced unsuitable concentration, FX losses, structured-product failures, or breach of duty to beneficiaries.

iii.

Multi-family offices

Multi-family offices operating as registered investment advisers — claims for fiduciary breach, conflicts of interest, related-party transactions, and breach of the express duties undertaken in the family office's engagement letter or services agreement.

iv.

Dual-registrants & hybrid firms

Advisers and firms operating in both broker-dealer and investment adviser capacities — a fertile area for hat-switching and disclosure failures between fiduciary and brokerage standards.

Bank wealth platforms & TAMPs

Turnkey asset management programs, bank wealth platforms, and outsourced chief investment officer arrangements — claims arising from concentration, allocation drift, conflict of interest, and Marketing Rule violations in the advertising of platform performance.

vi.

Broker-dealers

FINRA-member firms, including wirehouses, regional broker-dealers, and independent BDs. Claims proceed in FINRA arbitration under the customer agreement's pre-dispute arbitration clause.

vii.

Individual advisers & representatives

Investment adviser representatives, registered representatives, and individual financial professionals — often joined as named respondents alongside the firm where personal liability is appropriate.

viii.

Supervising principals & CCOs

Branch managers, OSJ supervisors, and chief compliance officers whose supervisory conduct or omissions enabled the underlying violation under the firm's compliance program.

Forum & Process

Court and AAA arbitration. FINRA when the defendant is a broker-dealer.

Where the dispute resolves depends on who the defendant is and what the agreement specifies. Claims against RIAs, private banks, and trust companies proceed in court, AAA, or JAMS. Claims against FINRA-member broker-dealers proceed in FINRA Dispute Resolution. The forum decision is strategic and often outcome-determinative.

Forum I

Court & AAA arbitration

RIAs and private banks are not FINRA members, so claims against them proceed in whatever forum the advisory or trust agreement specifies — typically federal or state court, AAA, or JAMS. Federal court is also the forum for IA Act § 206 claims and for federal securities fraud actions. This is the primary forum for the practice.

Typical timeline

18 to 30 months depending on forum and complexity

Forum selection

Governed by the advisory or trust agreement's dispute resolution clause

Discovery

Full federal or state discovery; depositions, document discovery, expert discovery

Trial

Bench or jury trial, or AAA hearing depending on the agreement

Awards

Compensatory, rescission, disgorgement, attorneys' fees, punitive where applicable

Forum II

FINRA Dispute Resolution

The mandatory forum for customer claims against FINRA-member broker-dealers and their registered representatives, particularly relevant where the loss involved a brokerage account or dual-registrant conduct in brokerage capacity. Faster than court; discovery is limited but real; panel composition matters enormously.

Typical timeline

14 to 18 months from filing to hearing

Panel

Single arbitrator under $50K · three-arbitrator panel above $100K

Discovery

FINRA Discovery Guide presumptive lists; document-driven, limited depositions

Awards

Compensatory damages, attorneys' fees where authorized, punitive damages where warranted

How We Work

From first call to resolution.

A typical investor claim moves through six stages. The first two — case evaluation and document review — are where most of the strategic decisions get made. We invest heavily in those phases before recommending a filing.

Initial case review

Confidential conversation about the investment, the recommendation, the loss, and the firm. We review preliminary materials — account statements, the IPS, the advisory or trust agreement, written communications — and assess whether a viable claim exists. There is no charge for this phase.

ii.

Document gathering & analysis

If we proceed past initial review, we collect the full record — account opening documents, IPS, trade history, written communications, the firm's marketing and disclosures, and any compliance correspondence. We map the conduct against the applicable rules and build the regulatory framing of the claim.

iii.

Pre-filing strategy

We assess forum, defendant universe, theory of liability, damages methodology, and recovery sources (firm, individual, supervisor, errors-and-omissions coverage). Some matters resolve through pre-filing demand and direct negotiation; others proceed to filing.

iv.

Filing & discovery

Filing of the statement of claim or complaint, initial disclosures, document discovery, depositions where applicable, and retention of damages and conduct experts. The discovery phase is where the firm's own internal records often substantiate what we already see in the customer-facing record.

Pre-hearing & mediation

Most institutional matters mediate before final hearing. We prepare for hearing as if mediation will fail; the hearing-readiness is frequently what produces a favorable mediation outcome.

vi.

Hearing & award

Final hearing, post-hearing briefing where applicable, and confirmation or enforcement of award. Where appropriate, we coordinate parallel regulatory complaints with the SEC, FINRA, or state securities regulators.

Warning Signs

Indicators that often signal a viable claim.

No single indicator is determinative. But certain patterns in the underlying record reliably correspond to enforceable claims. If several of the following describe your account, a substantive case review is warranted.

Concentration in a single position or sector exceeding 25% of liquid net worth.

Stated risk tolerance was "conservative" or "moderate" but the account held alternative, leveraged, or speculative positions.

Substantial holdings in non-traded REITs, business development companies, or private placements you didn't fully understand at the time.

Structured notes, market-linked CDs, or principal-protected products that produced unexpected losses.

Leveraged or inverse ETFs held for weeks or months rather than days.

Securities-backed lending or pledged-asset lines from a private bank that exposed concentrated positions to forced liquidation.

Performance figures presented in marketing materials that turned out to be hypothetical, gross-of-fees, or selectively presented.

Portfolio composition or allocation that drifted materially from what your investment policy statement or advisory agreement specified.

Inherited concentrated positions that your trust company, private bank, or adviser failed to diversify despite their fiduciary obligation to do so.

The investment performed badly while the firm's compensation from the recommendation was substantial.

Discovery (formal or informal) that your representative had prior customer complaints, regulatory disclosures, or U-4 disclosures you weren't told about.

An investment was sold outside the firm's approved product list or through unusual channels.

Counsel

Rafael Recalde

Rafael leads the practice. He has represented investors, advisers, and financial institutions for over eighteen years across regulatory, transactional, and disputes work, with a focus on securities and investment management matters.

Earlier in his career, Rafael served as a regulatory clerk at the U.S. Securities and Exchange Commission and as legal counsel within the Latin America Legal Department of Citigroup. He is admitted in Florida and the District of Columbia, and he handles investor claims and FINRA arbitrations on a national basis.

The most useful thing about having spent years on the regulatory and adviser-side of this practice is knowing exactly how the firms organize their compliance records — and where the inconsistencies tend to live.

The investor practice is deliberately separate from the firm's other engagements. We do not represent registered investment advisers, private banks, trust companies, or wealth management firms in customer disputes. The practice is structured to be free of those conflicts, and investors who have been turned away by larger firms because of industry-defense conflicts are a defining segment of our intake.

Bar admissions

Florida (No. 60040)
District of Columbia

Court admissions

S.D. Fla. · 11th Cir.
Pro hac vice nationally

Earlier experience

U.S. Securities & Exchange Commission
Citigroup Legal

Forums

Federal & state court · AAA
FINRA Dispute Resolution

Frequently Asked

Common questions before engaging.

Investors considering claims typically come with the same set of practical questions. Direct answers below; specific facts are addressed during the initial case review.

Do I have to pay anything to have my case evaluated?

No. Initial case evaluation is at no cost and no obligation. We review preliminary materials, talk through the conduct, and tell you whether a viable claim exists before any engagement is signed.

How are your fees structured if you take the case?

We engage on hourly, hybrid, contingent, and success-fee bases depending on the matter, the recovery profile, and what makes sense for the client. Many investor matters proceed on contingent or hybrid arrangements; substantial institutional matters may proceed differently. We discuss this transparently before engagement.

Will my case go to court or to arbitration?

It depends on the defendant and the agreement you signed. Claims against registered investment advisers and private banks typically proceed in court, AAA, or JAMS, whatever the advisory or trust agreement specifies. Claims against FINRA-member broker-dealers proceed in FINRA Dispute Resolution arbitration, which is mandatory under the brokerage customer agreement. Many matters involve both forums in parallel. The forum decision is part of early case strategy.

How long does a typical case take?

Court and AAA matters against RIAs and private banks typically run 18 to 30 months from filing to resolution. FINRA arbitrations against broker-dealers typically run 14 to 18 months. Many cases resolve before final hearing or trial through mediation or direct negotiation; timelines vary considerably depending on the size and complexity of the matter.

Is there a deadline for filing my claim?

Yes. Claims against investment advisers and private banks are governed by state statutes of limitation that vary by claim type — typically two to four years from discovery of the harm, depending on the jurisdiction and theory of liability. Federal securities claims under § 10(b) have their own limitations period (the earlier of two years from discovery or five years from the violation). FINRA's eligibility rule generally bars brokerage claims more than six years after the events. Earlier consultation is strongly preferable; waiting can be fatal to otherwise meritorious claims.

What records should I gather before contacting counsel?

Account statements covering the relevant period; the investment policy statement and any updates; the advisory, trust, or customer agreement; written communications with the adviser or firm; and any marketing or product materials provided in connection with the recommendations. Don't worry if you don't have everything — we can request the rest in discovery.

Should I close my account before contacting counsel?

Generally not before discussing it with counsel. Closing the account, transferring assets, or signing release language can affect the claim. Most decisions about account status are best made after an initial conversation about strategy.

Will pursuing a claim affect my credit, my taxes, or my other accounts?

Filing an investor claim has no direct impact on credit. Tax treatment of any recovery depends on the nature of the recovery and your individual circumstances; we coordinate with the client's tax counsel where helpful. Other accounts at the same firm sometimes warrant separate consideration as part of overall strategy.

Request a Review

Request a confidential case review.

Initial inquiries are reviewed personally and treated as confidential whether or not we ultimately work together. We respond to substantive case inquiries within one business day. There is no cost or obligation associated with the initial review.

Florida-based, available nationally for court, AAA, and FINRA matters across the United States.

Useful information for first contact

The advisory firm, private bank, or trust company involved
The approximate time period of the conduct
The nature of the relationship (advisory, trust, brokerage, hybrid)
The investments at issue and approximate loss
Whether any complaint, claim, or regulatory inquiry has already been filed
Whether you have account statements, the advisory or trust agreement, and the investment policy statement available

Name *

Email *

Phone

Firm, bank, or adviser involved

Approximate loss

Tell us what happened *

Or reach us directly at rafael@recaldelaw.com · (305) 792-9100