Mississippi Failure To Supervise Lawyers
Our Gulfport, MS Securities Law Firm Represents Investors In Recouping Losses From Brokerage Firms
If you are a Mississippi investor who suspects that your portfolio losses may have been enabled or even caused by the lax supervision of your brokerage firm, contact the Gulfport, MS securities law office of Shepherd Smith Edwards and Kantas (investorlawyers.com) today. Unfortunately, the failure to supervise by a broker-dealer is an all too common occurrence.
FINRA Rule 3110 Supervision and the Duty of Brokerage Firms:
The Financial Industry Regulatory Authority (FINRA) has Rule 3110, which explains the supervisory requirements that brokerage firms must abide by. These include:
- Setting up and keeping up written supervisory procedures.
- Designating registered principals with the authority to execute the broker-dealer’s supervisory responsibilities.
- Making sure that each registered broker has a registered representative or principal tasked with supervising the financial advisor’s activities.
- Making reasonable attempts to make sure all supervisors are trained, experienced, or qualified to fulfill this role.
- Conducting interviews with registered representatives and principals to discuss compliance matters relevant to their activities at least yearly.
A failure to supervise is a huge problem because it can enable broker fraud and negligence. It also makes it easier to ignore red flags indicating something is amiss. Lax supervision makes it easier for financial advisors to make unsuitable investment recommendations, misrepresentations and omissions, overconcentrate a customer’s account, engage in unauthorized trading, selling away, churning, and commit other kinds of stockbroker misconduct.
It is up to the brokerage firm to monitor activities in customer accounts, make sure their brokers are conducting the necessary due diligence when making investment recommendations, and pay attention to any client complaints against their financial advisors.
How Can You Prove That You Were The Victim of a Failure To Supervise?
First of all, it is important to know that most brokerage firms would rather deny wrongdoing or even blame you than admit to any negligence on their part that could have contributed to causing your investor losses. This is why it is very important that you DO NOT try to resolve this kind of legal claim directly with your broker-dealer and without trusted Mississippi failure to supervise attorneys by your side.
To successfully establish that there was negligent supervision by your broker-dealer, you will have to prove that there was an underlying securities law violation, the brokerage firm had supervisory jurisdiction over the registered individual who committed the alleged violation, and the firm neglected to reasonably oversee the broker. Not only that, but the cause of your investor losses must be determined.
Proving lax supervision by a brokerage firm can be tough unless you know what to look for and how to build a solid claim against them. Our Gulfport, Mississippi Failure To Supervise Lawyers have been representing investors for decades. We have represented clients in over 1000 matters in arbitration, mediation, and litigation, and we know how to maximize an investor’s chances for full financial recovery.
If you were the victim of supervisory deficiencies by a brokerage firm, you will likely have to file your case in FINRA arbitration, which is where these kinds of disputes are made. Arbitration is not the same as going to court, and different strategies are required. Because an arbitration panel’s ruling will likely be final, who you hire to represent you is incredibly important.
If your brokerage firm had no idea that any kind of broker fraud was taking place in your account, this doesn’t let them off the hook. You may be able to file a failure to supervise claim along with any of the other allegations involving your financial advisor.
Contact our Gulfport, Mississippi Failure To Supervise Lawyers Today
Over the decades, we have secured a collective many millions of dollars for thousands of investors against broker-dealers and investment advisers. Because we work on a contingency basis, you would only pay for our legal services if we secured an award or settlement for you.
Call (228) 206-2493 or (800) 259-9010 to schedule your free case consultation. You can also contact us online.
Our Mississippi Securities Law Office
2118 18th St #100
Gulfport, MS 39501