Failure to Execute Trades



There are times, when for one reason or another, an investment advisor fails to execute an order. Most often the failure to execute is the result of negligence: an order may be lost or misinterpreted. There are also times when the investment advisor believes that a particular purchase or sale is unwise. Although the investment advisor has an obligation to advise the investor, in most circumstances, the advisor must execute the investor’s orders. If the failure to execute a trade results in a loss to the investor, the investment advisor may be liable for that loss.