I own what were described as "alternative" investments, yet my investments have plummeted in value. Can I recover those losses?

All investments must be suitable for the investor in light of age, liquidity needs, risk tolerance, investment objectives and all market conditions. Moreover, the risks and features of an "alternative" investment must be adequately explained, including what could happen in a down market such as what we are experiencing with the Coronavirus.

"Alternative" investment losses thus can be recovered if those investments were not suitable, the risks were not adequately explained, or if any of the following alternative investments are involved:

  • Leveraged ETF or Inverse ETF
  • Energy (oil and gas) limited partnership
  • Non-traded REIT (real estate investment trust)
  • BDC (Business Development Company) limited partnership
  • Reverse Convertible Note or Reverse Convertible Bond (also known as "revertible notes" and "reverse exchangeable securities")
  • Hedge Fund
  • Equity-Indexed Annuity
  • Any other "structured product" that combined and underlying investment with the use of derivatives such as options

If you or someone you know incurred losses with such alternative investments or "structured products", and any of the above happened, we recommend contacting us for a no-charge consultation. Most investors file claims in FINRA arbitration to recover their losses, and most claims are brought on a "contingency fee" basis.

 

Categorized in: Covid FAQs

Related Questions

View More Answers

TESTIMONIALS

Previous
Next

If the regulators are after you, and are trying to make a case against you, and you are going to contest their allegations against you, make sure you have the best securities industry defense lawyers, Eccleston Law Firm. My case was spun into a combination of penalties including fines, cash settlements, CE courses and suspension. They were the best I have seen in action. When all was said and done, they had done their magic, my situation was negotiated and settled with a simple "letter of caution" and a case closed without action. It is the most important legal business decision you will ever make, make it Eccleston Law.

Rick R.

LATEST NEWS AND ARTICLES

November 15, 2024
FINRA Arbitrators Award Former RBC Advisor $9.7 Million in Gender and Age Discrimination Case

FINRA arbitrators recently awarded a former RBC Wealth Management advisor nearly $9.7 million in damages for age and gender discrimination claims. 

November 14, 2024
SIFMA Challenges CFP Board

According to InvestmentNews, the Securities Industry and Financial Markets Association (SIFMA) released a whitepaper criticizing the Certified Financial Planner (CFP) Board’s standards enforcement, asserting it operates as a “de facto, private
regulator.” 

November 13, 2024
FINRA Bars Fromer Merrill Lynch Advisor Over Relationship with Elderly Client

The Financial Industry Regulatory Authority (FINRA) has barred Imdadur “Gino” Rahman, a former Merrill Lynch advisor for multiple compliance violations involving his relationship with an elderly client.