Lexington, Kentucky Failure To Supervise Law Firm
Our Kentucky Broker Negligence Lawyers Have Been Representing Investors For Decades
Throughout the Bluegrass State, the Shepherd Smith Edwards and Kantas Kentucky Failure To Supervise Law Firm (investorlawyers.com) offers robust securities representation and personalized attention to investors who have suffered losses because of lax or poor supervision by brokerage firms. Contact our Lexington, KY securities law office to schedule a free, no-obligation case consultation.
How Failure To Supervise Enables Broker Misconduct and Negligence
Having the proper procedures and processes to guarantee correct supervision is so important that the Financial Industry Regulatory Authority (FINRA) has rules to enforce this requirement. They include FINRA Rules 3110, 3120, 2090, 2111, 2210, and 3270.
Not only must a brokerage firm have written supervisory procedures, but also, each of its associated persons, registered representatives, and managers must be supervised to ensure compliance. This includes monitoring activities in customers’ accounts and outside business activities.
Proper supervision enables brokerage firms to identify red flags right away. When poor or no supervision occurs, this makes it easier for broker fraud, investment scams, churning, unsuitable investment recommendations, selling away, overconcentration, negligence, and gross negligence to occur, which can lead to serious portfolio losses for a Kentucky investor.
Even if a broker-dealer was unaware that anything untoward was taking place in a customer’s portfolio, if supervisory failures were involved, that client may be able to pursue damages for losses sustained under the firm’s poor watch.
The failure to supervise by a brokerage firm, or one of its supervisors, is a breach of fiduciary duty. Yet, many financial firms end up as respondents in investment loss recovery claims for this very reason.
More examples of lax supervision by a broker-dealer:
- Not putting in place a strict and thorough hiring/screening process to weed out any bad brokers.
- Not regularly reexamining its own supervisory procedures to make sure they are still relevant.
- Failure to conduct reviews of their brokers to ensure they are in compliance not just with the firm’s procedures but also with FINRA rules.
- A lack of proper training procedures.
- Poor monitoring of communications between financial advisors and current customers, or prospective ones, to ensure compliance.
How Can Our Kentucky Failure To Supervise Law Firm Help?
At Shepherd Smith Edwards and Kantas, our Lexington, Kentucky lax supervision attorneys are here to help investors who were harmed to pursue damages from the broker-dealers responsible. Whether you worked with a Kentucky broker or one elsewhere in the US, if we decide to work together, our securities law firm will conduct a thorough investigation into all of your losses and file a solid claim for you in FINRA arbitration.
This is not the kind of legal case you want to pursue on your own. As a matter of fact, it is very important that you do not approach your financial advisor directly to try to resolve this matter.
Our Lexington, Kentucky Failure To Supervise Law Firm remains committed to providing each client seasoned securities representation and personalized attention. Many of us are former financial advisors who left that industry because of the unsavory practices and lax supervision we saw that we saw were hurting investors.
It is why we chose to become Kentucky securities attorneys. We have over 100 years of collective experience in securities law and the securities industry. Over the decades, we have helped thousands of investors to recoup losses from financial advisors, stockbrokers, investment advisers, and their firms.
We understand that portfolio losses can have serious consequences, whether you are a retail investor, retiree, high-net-worth investor, or institutional investor. It is why our Lexington securities law practice is exclusively focused on investment loss recovery.
Contact our Kentucky Failure To Supervise Law Firm
In Fayette County, Jefferson County, Boone County, Kenton County, and all over Kentucky, call (859) 810-0266 or (800) 259-9010 or fill out this online form to schedule your free, initial case consultation with our Kentucky Failure To Supervise Law Firm.
Our Kentucky Securities Law Office:
216 E Reynolds Rd #C
Lexington, KY 40517