Did you lose money investing in Moody National Willoughby S TIC?
Galvin Legal, PLLC is launching an investigation on behalf of investors who suffered losses investing in Moody National Willoughby S TIC at the recommendation of their financial advisor. If you suffered losses investing in the investment, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the brokerage firm that recommended the investment.
Tenants-In-Common (“TIC”) are high-risk high-commission complex investments that are generally only suitable for sophisticated high net worth investors.
Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments, such as Moody National Willoughby S TIC, and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokerage firms that fail to conduct adequate due diligence on investments they recommend, such as Moody National Willoughby S TIC, or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
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