New York Failure To Supervise Attorneys

New York Failure To Supervise Attorneys

We Represent Investors Throughout Manhattan and the Rest of The Empire State

Shepherd Smith Edwards and Kantas, New York Failure To Supervise Attorneys (investorlawyers.com) represent New York investors against Wall Street brokerage firms, as well as broker-dealers and investment advisers all over the United States. We are a nationally recognized securities law firm. If you suspect that a financial firm may have been negligent in the way it oversaw your portfolio or the registered representative that you worked with, contact our Buffalo, NY securities law office so that we can help you determine whether you have grounds for a failure to supervise case to recoup your losses.

Failure to Supervise by a Broker-Dealer 

It is important that brokerage firms adhere to their supervisory duties so as to protect customers and keep their money safe. Unfortunately, that doesn’t always happen, which can enable broker misappropriation, fraud by third parties, and other kinds of broker misconduct or negligence that can contribute to customer losses.

As an investor, to win a New York failure to supervise lawsuit, you will have to prove that the financial firm you worked with had a legal duty to oversee the actions of its registered representative and that it breached this fiduciary obligation by not fulfilling the supervisory standard, which enabled your portfolio losses.

Depending on the circumstances, there could even be grounds for vicarious liability in which the brokerage firm is held liable for its supervised individuals’ wrongful or careless actions that they were unaware of.

Failure to supervise, also called inadequate supervision or negligent supervision, is one of the most common reasons that investors end up suing their broker-dealers. This kind of legal claim may also allege other grounds, such as unsuitable investment recommendations, overconcentration, selling away, churning, unauthorized trading, too risky trading strategies, due diligence failures, or breach of fiduciary duty.

Not only is proper supervision a duty that brokerage firms owe to their customers, but it is required by the Financial Industry Regulatory Authority, which oversees broker-dealers and their financial advisors. This includes having the necessary written procedures in place and systems implemented.

The brokerage firm also must be in supervisory compliance with securities industry regulations. Registered representatives and associated persons must be properly trained. Every supervisor must have their own supervisor overseeing them.

What Are Some Other Examples of Failure TO Supervise?

• Not putting in place a thorough screening process for hiring its brokers.
• Neglecting to make sure that any financial advisor who joins the team doesn’t already have a record of defrauding investors.
• Failing to oversee communications between brokers and customers.
• Not having a system to detect red flags indicating broker misconduct, violations, or mistakes.
• Neglecting to monitor transactions in customers’ accounts.
• Failing to implement “heightened supervision” for a broker who is already on the team and has a history of regulatory or customer complaints.

What To Know When Filing A New York Failure To Supervise Claim?

This is a distinct cause of action that broker-dealers will try to reject. This is why it is so important that you have knowledgeable, New York Failure To Supervise Attorneys working with you who know how to build a solid case on your behalf.

Shepherd Smith Edwards and Kantas New York Failure To Supervise Attorneys have successfully represented thousands of investors over the decades, including against the largest Wall Street firms, and we have secured financial recovery for the majority of them whether in arbitration, litigation, or mediation.

The attorneys, legal assistants, paralegals, consultants, and others at our NY failure to supervise law firm have more than a century’s worth of collective experience in securities law and the securities industry. We have the skills, resources, and knowledge to maximize each client’s chances for a full recovery.

More than 90% or our investors have secured full or partial awards or settlements. We are committed to providing not only quality securities representation but personalized attention.

Contact Our NY Securities Firm: 

In New York City, Wall Street, Erie County, Syracuse, Rochester, Albany, and throughout the state, call (800) 259-9010 or (716) 261-3529.

Our New York Failure To Supervise Attorneys:

Sheridan Meadows Corporate Park South
6225 Sheridan Dr #308-B
Buffalo, NY 14221