by Brian Mahany
Billions of dollars have been invested in Oppenheimer Rochester Funds. Last year holders of the Oppenheimer Rochester National Municipal Bond Fund saw their investments lose 60% of their value. While no mutual fund or stockbroker can guarantee the performance of a mutual fund, brokers do have an obligation to only recommend suitable investments for their clients.
Stockbrokers have a duty to fully understand their client’s financial situation, risk tolerance and investment goals before making recommendations. Once they know their customer, they must tailor their recommendations to insure they are suitable. These so called “know your customer” and “suitability” rules protect customers when a broker recommends the wrong stock or mutual fund.
In the case of Oppenheimer Rochester funds, some brokers may have failed to perform proper due diligence before recommending the fund to their clients. Many people assume that municipal bond funds are relatively safe investments. The Oppenheimer Rochester funds were not; Morningstar and the fund’s own prospectus warned of the high risk associated with these funds. In fact, they warned the National Municipals Fund was “too bold for the vast majority of investors.”
There are claims being made against the fund itself but those may or may not make investors whole. Such settlements usually do not. If you purchased one of these funds from a stockbroker, you may be able to recover your losses from the broker and the broker’s employer. The Financial Industry Regulatory Authority has established an arbitration procedure to allow customers to make claims against brokers and brokerage companies.
If you were mislead in the purchase of the Oppenheimer Rochester funds or lost money through any type of unsuitable recommendation or fraud, call us. We generally take FINRA arbitration cases on a contingency fee basis meaning you do not pay anything for legal fees unless we win. Call Brian Mahany for more information and a no obligation consultation. Services provided anywhere in the U.S. Brian can be reached at (414) 704-6731