How to Protect Yourself from Structured Products

At best, structured products are complicated and not appropriate for every investor. At worst, structured products are used to drive up broker commissions instead of increasing, or even maintaining, an investor's wealth. The best way to avoid losing substantial amounts of money in structured product investments is to understand how to protect yourself.

What Do I Need to Watch for if I Have Not Yet Purchased a Structured Product?

Here's what you need to know if you have not already purchased a structured product. Structured products typically:

• Contain risky derivatives and have no income guarantee.
• Are hard to understand - for both investors and brokers.
• Are high in fees and profitable for banks and brokers.
• Are frequently sold to seniors, conservative investors who have done well, and people who can't afford major losses.
• Are not safe and secure investments. They are not guaranteed and should generally not be used if you need the money to pay expenses, need the money quickly, or if you cannot afford a loss of principal.
• Are sold by large firms whose names are known and trusted by potential investors.

How Can I Protect Myself if I Already Have a Structured Product?

If you have lost money investing in a structured product, then it is important to contact an Ohio securities fraud lawyer as soon as possible. Your lawyer will investigate the broker's actions and the supervision provided by the brokerage house or bank. Many brokers do not understand structured products and cannot adequately advise investors about the risks; however, many brokerage houses allow this to happen.

If you have lost money in a structured product, you are not alone and you have nothing to be embarrassed about. Just last year the SEC and some state securities agencies set up special task forces to monitor structured products. Individual investor structured product claims are on the rise. FINRA began tracking structured product complaints in 2008 and these have been a top source of investor complaints since then.

For more information about your potential claim, please contact an experienced lawyer who can advise you regarding your rights to securities arbitration or other potential resolutions to your problem. Please contact us today via our online contact form or call us at 1.866.827.6437 for more information.

Please be sure to order a free copy of Ohio securities fraud lawyer David P. Meyer's book, Five Signs of Investment Fraud and What to Do If It's Happened to You.