Financial investments are any activities that allow an individual to place or contribute monetary funds to any institution, organisation, business, property or product to acquire assets and gain income or other financial benefits. Depending on your strategies, these investments have corresponding advantages and risks that will either amass wealth or drain your finances.
Examples of financial investments include stocks, bonds, real estate, mutual funds, commodities, retirement plans and, more recently, cryptocurrencies. These investments are legal ventures; however, some individuals do fraudulent practices to swipe money out of unsuspecting investors or violate certain facets of banking and finance law.
In cases of fraudulence and other legal investment matters, you need the help of a financial investment lawyer. These legal investment issues can manifest in three scenarios: investment disputes involving properties and other assets, conflicts between the investor and financial agents and law violations.
This blog post will help you look for the right financial investment lawyer and help you recognise legal issues and violations involving the fields of banking and finance. Let’s dive in.
What Is a Financial Investment Lawyer?
A banking and finance lawyer is a practising lawyer specialising in handling financial and legal issues and focusing on the different aspects of banking and finance law. They can help clients solve financial disputes and legal matters whilst considering legal implications and ensuring that their finances are safe and secure.
Banking and Finance Law has multiple facets that also intersect with other areas of law, such as Property Law and Commercial Law. Finance Law, in particular, is an important area of practice for a banking and finance lawyer and focuses on matters, such as insurance, capital marketing, commercial banking, property investment, taxes and many more.
Investment lawyers should be skilled in any of the following:
- Banking Issues—A skilled banking and finance professional lawyer can assist you with any banking issues, such as disputes with your bank and loan and mortgage issues.
- Debts and Collection Issues—Financial lawyers can help you come up with settlement arrangements with collection companies and provide advice on debt collection laws. They can also offer legal protection against debt collector harassment and ensure they follow the proper etiquette and guidelines when collecting the debt.
- Insurance and Annuity Contracts—Your banking and finance lawyer can help you understand the legalities and wordings that constitute your insurance and annuity contracts to avoid any fraudulent or legal issues that may arise later on. These are crucial for creating long-term retirement plans.
- Bankruptcy Claims—Bankruptcy is a complicated legal issue and can be taxing for the companies or individuals that face this issue. Investment lawyers can explain your rights and help protect your company’s assets during the transition period.
- Tax Issues—Tax law is an area of practice that commonly intersects with banking and finance laws. Your investment lawyer can help file your personal or business taxes and provide legal advice on tax issues.
- Trust and Estate Planning—Formulating a trust or final will can be complicated and requires an eye for detail. A financial investment lawyer can help ensure that the proper signatories are in place and crucial information is correct and valid.
- Securities Law—Another facet of finance law that is complex and requires the expertise of a seasoned financial investment lawyer. Securities law involves the purchasing and selling of stocks, bonds and mutual funds that are considered security interests.
The road to becoming a professional investment lawyer is challenging and requires ample and expert knowledge of multiple areas of law. Choosing a lawyer with the right qualifications for your financial issues should be your top consideration to help you tackle your problems with the right solutions.
What Are Common Investment Service Issues that Require a Financial Lawyer?
Since you understand the specific fields that financial investment lawyers tackle regularly, let’s look at some investment service issues that require investment legal advice. Here are some of the common problems:
- Stock/Share Distribution—Shareholders can ask for legal advice concerning the distribution of stocks, such as not adhering to what was previously agreed upon in terms of quantity, delivery and timeframe.
- Inaccessibility of Funds—These problems usually involve beneficiaries of a trust fund not being able to access their funds despite following proper compliance with the conditions indicated in the trust contract, such as reaching the required age.
- Confidentiality or Breach of Privacy—Financial advisors or agents can be legally held liable for disclosing personal information to other parties, which they may use to threaten, blackmail or embezzle funds.
- Non-disclosure of Required Documents—Those who withhold necessary information for investors before any transaction or purchase can also be held liable and may be accountable for fraud.
- Foreign Investment Disputes—This legal issue can be complex as it involves both domestic and international banking and finance laws and may require a financial investment lawyer who is highly knowledgeable and a renowned expert in that particular area.
- Breach of Fiduciary Duties—Financial representatives or agents that handle an investor’s portfolio can be held accountable for neglecting their fiduciary duties and mismanaging funds. They can also face litigation if caught using the funds for personal use.
Legal Consequences of These Investment Issues and Violations
These investment issues in the previous section can lead to violations of specific banking and finance laws and may face legal consequences. The penalties include but are not limited to the following:
- Suing in civil court.
- Paying monetary damages, including attorney’s fees and other relevant legal fees.
- Attending mediation and arbitration sessions.
- Paying civil or criminal fines.
- Serving prison time.
- Paying for punitive damages other than monetary damages.
Such penalties are not to be taken lightly and must be a wake-up call for any banking firms, lending firms, financial advisors or agents doing illegal and fraudulent violations. Investments can be a win-win situation for investors, lenders and any party involved when handling them legally and responsibly. The law will always stand for the truth, even in Australian banking and finance fields and must always be upheld in any situation.
What Should I Look For in a Financial Investment Lawyer?
Choosing the right banking and financial investment lawyer is an important decision. It must be considered to ensure that your lawyer can handle any legal issues you face with the utmost care and attention.
They should have enough experience, value your time and have an outstanding reputation that will provide you with the best results. Another factor is a great personality and someone you can trust since you’ll contact that person regularly.
How Madison Marcus Can Help You
At Madison Marcus, we can guarantee that our financial investment lawyers can provide you with the necessary solutions and legal expertise to help you with any investment issue you may face. We aim to ensure that your hard-earned investments are safe and secure to help you reach your dream of financial freedom. For all enquiries, contact us here.