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Structured Products Are Not Suitable for Most Retail Investors
HOUSTON, Aug. 22, 2022 /PRNewswire/ -- Shepherd Smith Edwards and Kantas (investorlawyers.com) is looking into claims of losses involving JPMorgan Chase Auto Callable Contingent Interest Notes connected to the S&P GSCI® Crude Oil Index Excess (SPGCCLP).
What Is An Auto Callable Contingent Interest Note?
This is a complex, structured product that is usually an investment vehicle based on a single security, index, commodity, debt issuance, foreign currency, or basket of securities.
Structured products with a set maturity date are meant to offer risk-return trade-offs that create a preset formula for the possible risks and returns. However, this kind of investment is not suitable for most retail investors. Yet financial firms, such as JPMorgan Chase, have been creating auto-callable notes and selling them to retail customers who lack the investing experience or risk tolerance level to handle the losses that can result.
JPMorgan Brokers May Have Misrepresented The Risks
If an investment product and its risks are difficult to explain to an investor, let alone for the latter to comprehend, then the more a financial advisor should do to make sure that they explain this product in a way that a customer can understand. Unfortunately, investors who purchased JPMorgan Chase Auto Callable Contingent Interest Notes tied to the S&P GSCI® Crude Oil Index Excess allegedly may not have been apprised of all of the risks. This is why many of them were not expecting to sustain significant losses when COVID-19 and the other adverse events that followed heavily impacted oil prices and their investments.
Your broker-dealer has a duty to make sure that its registered representatives conduct the necessary due diligence to both fully understand any financial instrument they recommend to a customer as well as ensure that it is suitable for the latter according to their specific investing goals and risk tolerance level. Losses resulting because of brokerage firm negligence can be grounds for a Financial Industry Regulatory Authority (FINRA) arbitration claim to pursue damages.
Seasoned Structured Product Investor Lawyers
SSEK Law Firm has been fighting for investors and their financial recovery against the largest broker-dealers on Wall Street. We have helped thousands to pursue and receive damages caused by broker misconduct or negligence.
Call SSEK Law Firm at (866) 901-4162 today.
