Trouble with disclosures

It may be a weak excuse. 

But advisors can often avoid legal trouble simply by pointing out that they made sure clients knew exactly what they were getting into.

Two recent lawsuits suggest many advisors fail to take that precaution. The Teachers Insurance and Annuity Association of America, or TIAA, is faced with allegations that it wasn't upfront about how clients were being moved into high-fee annuities. And Commonwealth is fighting a landmark judgment over not informing investors of cheaper alternatives to mutual funds. 

By being a tad more upfront, the firms might have avoided some of this pain.