Unsuitability

A broker has a duty to make recommendations to the client that he reasonably believes are suitable for the client, and that are consistent with the client's objectives and needs. If the broker recommends an investment that is inconsistent with the client's investment objectives and the broker knew or should have known that it is inconsistent, then the broker may be liable for unsuitability. Additionally, a broker is required to conduct due diligence to determine the suitability of a particular security to the needs of the investor.