This claim arises when a broker fails to learn essential facts about the specific security or strategy he recommends, or when he fails to recommend investments in accordance with your goals, needs and risk tolerance. Regulators that oversee broker conduct require that broker recommendations be suitable for you. Contrary to practices of some brokers, “one size” does not fit all.  In accordance with FINRA regulations, a financial professional must assess your objectives,   income, risk tolerance and more before recommending a security to you. Claims for unsuitability can arise, for example, when a broker recommends risky hedge funds or private placements to a retiree in need of fixed monthly income.  Not only are the brokers bound to uphold crucial suitability obligations, the brokerage firms are also required to supervise the broker’s recommendations so as to reasonably ensure a broker’s compliance with such duties. 

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