Failure to Supervise in the Sale of Securities is Illegal
Securities brokerage firms can be held liable for their failure to supervise their financial advisors. Broker dealer firms have a duty to supervise the sales practices of their brokers and to review customer statements for, among other things, evidence of suitability, unauthorized trading, or excessive activity.
FINRA Conduct Rule 3010 specifically provides that:
Each member shall establish and maintain a system to supervise the activities of each registered representative and associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with the Rules of this Association. Final responsibility for proper supervision shall rest with the member.
Knowledgeable Utah Failure to Supervise Lawyer
Heiner Law Offices was established in 1996 by Randall R. Heiner. Over the years when Mr. Heiner owned a full service stockbrokerage firm he supervised hundreds of licensed and registered investment professionals. He knows supervision and compliance and he understands exactly what to look for in failure to supervise cases.
If you suffered losses in your account, the reason might be that your broker was not properly supervised. After we interview you and examine your documents we will determine if lack of supervision was a cause of your losses. If it is after you hire us we will relentlessly pursue the responsible party for failing to supervise your investment advisor. Our law firm has the knowledge and skill to prosecute your case in the best way. It is important that you retain competent and experienced counsel in order for you to win.
Contact Us for a Free Consultation
Contact our office today to discuss your case. We offer a free initial consultation. You can reach us by phone at 801-366-5200 or via email. We try to take every case on a contingency basis which means we don’t collect a legal fee unless we successfully make a financial recovery for you.