Is a Securities Firm Liable for the Actions of Its Brokers?
Video Summary: The securities fraud lawyer, Kirk Smith, explains how a firm will have liability for its brokers and financial advisors.
Absolutely security firm is always liable for the actions of its brokers. It is a general rule, a principle we liable for the acts of its agent. In a situation with a brokerage firm and a financial advisor, he goes step further, under certain circumstances, a broker or financial advisor could give liability to his employer even if you do not have an account with the firm.