When individual investors engage in options account trading, the potential for monetary gain is there, but also risk of financial loss. Because options trading can be more complex than some other kinds of investment, retail (individual) investors may elect to rely on...
FINRA
FINRA gives member firms a reminder of their duty to supervise vendors
Across the country, a variety of commercial, government and nonprofit entities regularly outsource tasks to third parties. Whether to cut the costs of having employees do the work or to subscribe to the idea that cheaper is always better, when broker-dealer firms...
Best execution responsibilities of retail brokers
Many individuals use low- or no-commission brokers to purchase and sell their investments in various securities. While this seems like a good deal – and it probably is – federal regulators require discount brokers to diligently monitor whether their customers’...
Brokers should not be client beneficiaries or hold personal positions of trust for customers
In April 2021, a currently registered broker and advisor (respondent) settled with the Financial Industry Regulatory Authority (FINRA) allegations that he violated FINRA Rule 2010 that someone reported to FINRA on its Securities Helpline for Seniors. Respondent did...
Retail investors at risk of financial loss from securities fraud
Owners of small, family businesses and individuals at various levels of wealth often invest their money in stocks to secure their futures and protect their families. The unfortunate truth is that these retail investors face some risk of becoming the victims of...
Investors hurt by broker fraud may consider FINRA arbitration, part 2
In part 1 of this post, we talked about the role of the Financial Industry Regulatory Authority (FINRA) as a forum where investors can arbitrate claims of negligence, improper investment or fraud against their brokers or brokerage firms for problematic investments...