A private credit recommendation can lead to a substantial loss of life savings. Investors should understand their rights when they are recommended such investments.
Your advisors have duties to only recommend investments that are consistent with your objectives and appetite for risk. If you are an investor nearing retirement or a conservative or moderate investor, you should only be recommended conservative or moderate investments. As such, speculative private credit investments should not be recommended to you.
Being wealthy does not cure an inappropriate investment recommendation. Investors with high net worth or with income above certain levels are considered “accredited.” Advisors often use this as an excuse for unsuitable recommendations. But even accredited investors have a right to recourse if an advisor recommends an investment inconsistent with either your objectives or risk tolerance.
Jeffrey Pederson represents investors sold inappropriate investments. Call for a free and confidential consultation with an attorney. He can tell you if your advisor’s recommendation is inappropriate.
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