Financial Malpractice

What is Financial Malpractice?

Malpractice in any form is defined as "improper, illegal, or negligent professional activity". While most cases of malpractice are focused on medical and legal, there is a growing concern to examine financial malpractice.

As with any other service profession, financial professionals have a standard of care which they must meet. This is their fiduciary responsibility, which is considered the property or power entrusted to them to benefit their client. Negligence can occur when the financial professional fails to:

  • Make suitable financial recommendations
  • Execute trades or transactions as ordered
  • Charge excessive fees
  • Commit theft or fraud

Consequences for financial malpractice range from a civil suit to imprisonment. Theft and fraud carry criminal charges and may result in jail time.

If you believe you you've been a victim of financial malpractice, discuss your case with a qualified Malpractice Lawyer. Law vary by state, you need the professional help of an experienced lawyer. You worked too hard for your retirement savings to have it taken away by the negligence of someone else.


Additional Resources

Justipedia: Malpractice Lawyers



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