Our San Diego Failure To Supervise Law Firm is Representing Southern California Investors Who Have Suffered Losses Because of Lax Supervision By Their Broker
From our San Diego securities law office, the Shepherd Smith Edwards and Kantas San Diego Failure To Supervise Law Firm (investorlawyers.com) represents Southern California investors who suffered losses because a brokerage firm failed to properly supervise their portfolios and the financial advisor responsible for managing their accounts. We cannot stress how essential it is that these firms have the proper supervisory measures in place and that they enact them.
Why Lax Supervision by Brokerage Firms Can Be A Serious Problem For California Investors
The Financial Industry Regulatory Authority (FINRA) is tasked with regulating US brokerage firms and their registered representatives. It is also its job to protect investors and has many rules in place for this. This includes FINRA Rule 3110, which requires its member firms to set up and maintain a supervisory system for overseeing all of its brokers and their activities—both in customers’ accounts and any outside business activities.
Rule 3110 mandates that brokerage firms have written supervisory procedures, a supervisor for everyone, including those already in a supervisory role, and detailed instructions for how to enact all of this. Not only that, but it is the broker-dealer’s job to make sure that all of their registered representatives have the training and experience necessary to properly manage customers’ accounts.
Correct and compliant supervision by a brokerage firm can help in the calling out of red flags right away and the identification of any fraudulent behavior that might be taking place. Unfortunately, even with FINRA oversight, there are broker-dealers that have been known to fail in their obligation to properly supervise their financial advisors.
When this happens, it is their customers who can end up suffering. Lax supervision from a brokerage firm can enable poor or careless broker conduct, including unsuitable investment recommendations, misrepresentations, and omissions of the risks, unauthorized trading in an investor’s account, selling away, churning, excessive trading, misappropriation, negligence, and investment fraud. All of these can lead to serious portfolio losses.
Our San Diego, California failure to supervise attorneys know how to identify when inadequate or simply inexcusable supervision by a brokerage firm played a part in what happened to you. We have been representing investors against brokerage firms and investment advisors for 35 years.
Why Hire Our Southern California Failure To Supervise Law Firm?
Shepherd Smith Edwards and Kantas is exclusively focused on representing investors against brokerage firms and investment advisers. Securities law is the only kind of law that we practice. Many of us are former financial advisors who quit because we didn’t like the many unsavory practices we witnessed that were benefitting brokerage firms while hurting their customers.
Now, we take what we know about the brokerage industry, along with our years of experience in the securities industry, to protect investors’ rights and fight for their financial recovery.
Pursuing a failure to supervise claim against a financial firm can be challenging, especially as most broker-dealers and investment advisers have their own legal team on retainer to refute such claims. We know how to maximize your chances for a full recovery, whether in arbitration, mediation, or litigation.
When you hire us, you won’t be represented by just one of our failures to supervise attorneys. Everyone at our firm will be working to build a solid securities claim for you. More than 90% of our clients have obtained full or partial financial recovery from the brokerage firms and investment advisors that were liable.
Southern California Lax Supervision Law Firm
The first step is to speak with one of our San Diego failure to supervise lawyers so we can assess whether you have grounds for suing your broker-dealer. In Southern California, call (619) 550-4847 or (800) 259-9010. You can also fill out this online form to schedule your free consultation.
1545 Hotel Cir S #150-1
San Diego, CA 92108