Traders in commodities should bear in mind that when bringing a claim against a commodities trade advisor that you will need more than a claim that the advisor breached their fiduciary duty if seeking damages for an advisor’s alleged acts of churning a client’s account.
Yes, a relationship between you, the trader, and your commodity trading advisor can give rise to a fiduciary duty. But going before a Commodity Futures Trading Commission judgment officer and trying to get a ruling in your favor based on fiduciary will require a showing of fraud or other corresponding violations of the Commodity Exchange Act or CFTC rules.
Keep in your mind during your quest for damages that you may find relief in state law where a commodity trading advisor is also responsible for making decisions regarding other people’s assets.
See Daniel J. Emily v. Guy K. Gleichmann and United Strategic Investors Group, CFTC Docket No. 14-R007.
The above item is presented for informational purposes and should not be viewed as legal advice or treated as retention of an attorney.