New Orleans Failure To Supervise Law Firm

The SSEK New Orleans Failure To Supervise Law Firm is Serving Louisiana Investors from Our Metairie Securities Law Office

At the New Orleans Failure To Supervise Law Firm office of Shepherd Smith Edwards and Kantas (investorlawyers.com), we cannot stress enough the necessity of brokerage firms to properly supervise their registered representatives and associated persons. Correct and compliant oversight can protect investors, helping to identify red flags indicating signs of financial advisor misconduct or investment fraud before serious portfolio losses can result. From our NOLA securities law office in Metairie, Louisiana we work with investors in New Orleans and throughout the Bayou State to recoup losses involving a failure to supervise by the broker-dealer.

What Does Failure To Supervise Involve and How Does This Hurt Investors?

This is the term given to when a broker-dealer does not properly oversee registered representatives and other staff. According to the Financial Industry Regulatory Authority (FINRA), which is the self-regulatory organization that regulates member brokerage firms in the US, broker-dealers are required to:

Set up and keep up a supervisory system to oversee associated persons’ and registered representatives’ activities. This includes having written supervisory procedures in place and implemented.
Make sure of compliance with FINRA rules, regulations, and securities laws.
Perform regular reviews and inspections of their offices, customer accounts, and brokers.
Ensure that everyone, even senior principals, are supervised.
Review and deal with customer complaints.
Have procedures in place to review incoming and outgoing communications, as well as internal correspondence.
Engage in reasonable efforts to make sure that all supervisory personnel are trained/experienced to be able to fulfill their responsibilities.
Oversee the outside activities of registered representatives.

For Louisiana investors, the difference between lax supervision and proper supervision by a broker-dealer can be significant. Proper supervision may stop unsuitable investment recommendations, excessive concentration, unauthorized trading, broker misappropriation, misrepresentations and omissions, churning, selling away, due diligence failures, breach of fiduciary duty, investment fraud by the financial advisor or a third party, negligence, and gross negligence.

As for broker-dealers, when the failure to supervise enables broker misconduct, negligence, or investment fraud, they can and should be held liable. Even if they did not know anything untoward was going on—which they should have—and serious investor losses resulted, the customer may be able to sue for damages.

Examples That May Indicate a New Orleans, Louisiana Is The Victim of Failure To Supervise:

The investments your broker is recommending are too high-risk for you given that you are a novice investor who is risk-averse.
Trades are being made in your account that you never authorized.
You are not receiving regular account statements.
Your broker promised you high returns with little-to-no risk and still you ended up losing money.

If any of this is happening under your broker-dealer’s watch, then their failure to supervise may be a factor.

I’m a Louisiana Investor. What Should I Do If I Suspect My Portfolio Losses Could Have Been Caused by Supervisory Deficiencies By A Brokerage Firm?

Call our New Orleans securities lawyers in Metairie to request a free, no obligation case consultation. We have spent decades representing Louisiana investors against broker-dealers and investment advisers. We know how to determine whether you have grounds for an investment loss recovery case.

Do NOT try to resolve this matter with your broker or their firm on your own. This could harm your case in the long run. Broker-dealers never readily admit to wrongdoing and they may even try to blame you for your investment losses.

Try to gather all necessary documentation and communications between you and your financial advisor. Write down what you remember about your interactions and any of the activities in your account.

If your investment losses were, in fact, caused by a failure to supervise, you may be entitled to damages for the direct financial losses you sustained, and possibly even interest, punitive damages, and legal fees. However, you should know that proving any type of broker-dealer negligence is very difficult, which is all the more reason why you should be represented by seasoned New Orleans failure to supervise attorneys.

Contact our Louisiana Failure To Supervise Law Firm Today:

Shepherd Smith Edwards and Kantas has helped thousands of retail investors, retirees, elderly investors, accredited investors, high-net-worth individual investors, ultra-high-net-worth investors, and institutional investors secure financial recovery in arbitration, mediation, and litigation. Call (504) 324-0252 or (800) 259-9010. You can also reach out to us through this online form.

New Orleans Failure To Supervise Law Firm Office:

3850 N Causeway Blvd #200-B
Metairie, LA 70002