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FREE CONSULTATION
Many investors place their trust in brokers and brokerage firms because they do not have the financial expertise needed to understand the securities industry. A fiduciary duty is the highest standard of care. When this duty exists, brokers must put the client’s interest ahead of their own interest. That means the broker cannot recommend products to the client if the broker knows the products are not in the best interest of the client. A fiduciary duty exists when the relationship with the client involves a special trust, confidence, and reliance on the fiduciary to exercise his or her expertise in acting on the client’s behalf. An actionable breach of fiduciary duty occurs:
The attorneys at the Frankowski Firm take protecting investors seriously. We’ve held numerous negligent stock brokers and brokerage firms accountable for causing investors financial harm. Lead attorney Richard Frankowski has over 25 years of practical, financial, and legal experience in fighting for investors who have lost their savings. Many clients across the country have been awarded financial justice because of the firm’s ability to prove brokers engaged in fraud or misconduct.
The Securities and Exchange Commission (SEC) holds that a fiduciary duty does exist between a brokerage firm and its clients. Fiduciary duties are also defined in the rules of independent self-regulatory organizations such as FINRA, and the laws of other agencies. Well-established fiduciary duties include:
Education and information. FINRA works to provide investors and participants the trade information needed to properly assess the value of securities, including timely quotes and trade data for debt and equity securities.
Enforcement. The FINRA enforcement department investigates violations of its rules and other securities rules and brings disciplinary actions against wrongdoers when warranted. FINRA has the authority to impose fines and to bar or suspend brokers and firms that are in noncompliance.
Market regulation. The FINRA market regulation department monitors close to 100% of the equities market and 70% of the options market.
Office of Fraud Detection and Market Intelligence (OFDMI). OFDMI is the main point of contact for securities fraud related issues. The department has surveillance programs that inspect insider trading fraud and regularly reviews the complaints of investors, regulatory filings, and tips it receives.
Adjudication and decisions. FINRA has a hearing process to determine if rules violations have occurred, and if disciplinary action should be taken.
Virtually all investment disputes are heard by an arbitration panel. FINRA manages most of these panels nationwide and trains the arbitrators that sit on the panels. Most investors are required to participate in securities arbitration because firms usually include arbitration provisions in all of their client contracts. Our FINRA arbitration attorneys file claims on behalf of investors who believe their investments have been improperly handled.
The securities fraud attorneys at The Frankowski Firm know what stockbroker activity is designed to protect the investor and what actions do not. We can ferret out when stockbrokers misrepresent material facts and when they put the investor last instead of first. Our legal team works with financial experts to prove that the breach of fiduciary duty caused the investor actual and quantifiable harm. For help now, contact our office at 888-741-7503 or complete our contact form.
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