Breach of Fiduciary Duty
Financial advisors might breach the fiduciary duty they owe to their clients in a number of ways. Engaging in any type of fraud that benefits the Financial advisors at the expense of his/her clients is a breach of the fiduciary duty. Other examples include misrepresentations, churning, reverse churning, negligence, unauthorized trading and the sale of certain investment products (i.e., variable annuities, variable universal life insurance, non-traded REITs). Effectively, any action by the financial advisor that is harmful to the client (even if there is no financial gain by the financial advisor), can be deemed a breach of fiduciary duty.