Investment adviser & private bank claims·Florida-based · Available nationally · Free initial case evaluation
Investor Claims Counsel Investment Adviser, Private Bank & Fiduciary Misconduct Call directly (305) 792-9100
Private bank & trust company claims

When your private bank or trust company breached the duty it owed.

A private bank or a corporate trustee holds one of the highest duties the law recognizes — and clients and beneficiaries rarely see the account the way the institution runs it. When a bank trust department over-concentrates a position, fails to diversify what it inherited, or steers you into its own products, the resulting loss can be a breach of fiduciary duty.

Private Bank & Trust Conduct We Pursue

The failures that fiduciary duty does not permit.

Domestic and U.S.-affiliated foreign private banks and bank trust departments owe duties defined by state trust law and, where they manage assets, by investment-management fiduciary standards. The conduct below recurs across institutional trustee matters.

i.

Failure to diversify

A trustee's duty to diversify trust assets is one of the clearest obligations in trust law. A corporate trustee that held a concentrated inherited position — often the founder's own company stock — without diversifying can be liable for the loss that concentration produced.

ii.

Over-concentration & imprudence

Single-position or single-sector concentration a prudent fiduciary would not have allowed, measured against the trust's purpose, the beneficiary's needs, and the prudent-investor standard the institution was bound to follow.

iii.

Securities-backed & pledged-asset lending

Lines of credit collateralized by concentrated holdings that exposed the client to forced liquidation at the worst possible time — a recurring private-bank failure where the lending relationship drove the investment posture.

iv.

Proprietary-product steering

Undisclosed steering of trust and private-bank clients into the institution's own funds, structured products, or affiliated vehicles — a conflict of interest that breaches the duty of loyalty.

Who Can Bring the Claim

Clients, beneficiaries, and successor fiduciaries.

Trust and private-bank claims are not limited to the original account holder. The universe of proper claimants — and defendants — is part of the early strategy.

i.

Trust beneficiaries

Current and remainder beneficiaries harmed by a corporate trustee's investment conduct, including those who never selected the trustee and inherited its decisions.

ii.

Private-bank clients

Individuals and families whose managed accounts, discretionary mandates, or advisory relationships with a private bank produced concentration, FX, or structured-product losses.

iii.

Successor trustees & fiduciaries

Successor trustees and personal representatives pursuing recovery for the trust or estate against a predecessor institutional trustee whose administration caused the loss.

iv.

Family offices & entities

Family entities and single-purpose vehicles that engaged a private bank or trust company under an engagement letter defining duties the institution then failed to meet.

Frequently Asked

Common questions about this claim.

Can I sue a trust company or private bank for investment losses?
Yes, where the loss resulted from a breach of the institution's fiduciary duty — such as a failure to diversify, imprudent concentration, self-dealing, or steering into proprietary products. Corporate trustees and private banks are held to a high standard under state trust law and the prudent-investor rule.
What is a trustee's duty to diversify?
Under the prudent-investor standard adopted in most states, a trustee generally must diversify trust investments unless it reasonably determines that the purposes of the trust are better served without diversifying. A trustee that simply held a large concentrated position without analysis can be liable for the resulting loss.
I inherited a trust and the assets were badly concentrated — do I have a claim?
Possibly. Beneficiaries who inherited concentrated or illiquid positions that the corporate trustee failed to diversify are a common category of claimant. The analysis focuses on what the trustee knew, what its own duty required, and whether a prudent fiduciary would have acted differently.
Where are private bank and trust claims heard?
Because private banks and trust companies are not FINRA members, these claims typically proceed in court or in AAA/JAMS arbitration, depending on what the trust or account agreement specifies — not in FINRA arbitration.
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 broker-dealer 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

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