Securities Law

Do you dream of finding an omniscient stockbroker who will guard your principal from loss, invest it wisely, generate above-average returns, and never cause you aggravation or harm? Well, if so, wake up. You’re dreaming, remember? A Stockbroker’ Job Is To Sell Stuff Stockbrokers are just commissioned salesmen trying to make a buck. Many are

An Investment News article reports today that Thomas J. Buck, who was Merrill Lynch’s top financial adviser in Indiana by assets under management – reportedly $1.3 billion — was suddenly and unexpectedly terminated for alleged compliance violations. The article states in part: Ultimately, Merrill Lynch officials pointed to a number of problems they said had

As securities lawyers, we always argue on behalf of our arbitration clients (usually successfully) that stockbrokers are fiduciaries who owe the highest duty of care and fidelity to customers. The relationship an investor has with his or her stockbroker or financial advisor is considered by most to be one of absolute trust. An investor entrusts

The Financial Industry Regulatory Association (FINRA), a self-regulatory organization created and funded by the brokerage industry, wields powers ceded to it by its benevolent overseer, the Securities and Exchange Commission. One way the industry regulates itself is to have FINRA operate a mandatory dispute resolution system by which aggrieved investors are prohibited from suing brokers

The Ohio Division of Securities recently initiated an administrative action against an online binary options platform operating from the United Kingdom. The Division alleges that Vault Options lured at least one Ohio investor into investing $50,000 based on false and fraudulent statements, including touting the security of the investment and inflated returns up to 500

As we’ve explained in the past, most lawyers in the claimants’ bar contend that brokers are subject to a fiduciary standard and owe a duty to put customers’ interests ahead of the broker’s own interest in earning commissions and fees. While a stockbroker is required by rule and regulation to only recommend investments that are

Arbitrations are conducted under the auspices of the Financial Industry Regulatory Authority (FINRA). The case is commenced with the filing of a Statement of Claim, which is a complaint that spells out the relevant facts and the remedies sought. You will be designated the “Claimant” and the broker and brokerage firm will be referred to

The UBS Puerto Rico family of funds consists of 14 closed-end funds, sold exclusively through registered representatives and brokers with UBS Financial Services Inc. of Puerto Rico. During the past decade through the end of 2012, UBS reportedly has sold roughly $10 billion worth of these funds. Now the values of the funds are in

There’s a really good article today on the website Author Brad Klontz, a certified financial planner and financial psychologist, cogently explains the flaw in the traditional way brokers, investment advisors, and financial planners assess a new client’s risk tolerance. According to Klontz, the usual practice of using questionnaires or checklists to have the client

FINRA issued a report today entitled Financial Fraud and Fraud Susceptibility in the United States (.pdf). The name is cumbersome, but the report is illuminating. Fraudsters target nearly everyone, but older Americans are most vulnerable. The FINRA Investor Education Foundation conducted a survey of 2364 individuals age 40 or older. More than 80% of respondents

When searching for and choosing a stockbroker, many of us tend to become passive and even a bit deferential. After all, the broker is supposed to be an expert. But passivity is dangerous when you’re choosing someone who can potentially destroy your financial security. Here are five things people should ask brokers, but almost never

When your er calls or meets with you to recommend an investment, there are a lot of things you ought to know before you agree to invest. Here are five questions you should always ask. 1. Why is this investment suitable for me? Every investment a broker or financial advisor recommends must be consistent with a