7 signs you may have a case against your broker

| Jun 2, 2021 | Fiduciary Duty

As you have become closer to retirement age, you have upped your investing game. With a stockbroker’s help, you have been aggressively investing over the last five years, trying to take advantage of a strong economy. You’ve seen your investment grow overall, but suddenly you start to notice some concerning changes. You begin to wonder if your broker isn’t working in your best interest or is committing stock market fraud.

You might not realize that you could have a legal case against your stockbroker over misconduct. Yet, if you notice any of these issues, your broker could be in violation of Financial Industry Regulatory Authority (FINRA) rules and subject to a lawsuit:

  1. Your broker is making trades that you haven’t authorized. If your broker hasn’t received your authorization for specific trades, they could be abusing the trust you have put in them.
  2. Your broker is making trades very frequently. Your broker could be more concerned with earning a commission on these trades than boosting your investment gains.
  3. Your broker is marking trades as unsolicited when they suggested the trade. Brokers must designate trades they suggested. If they don’t, that can be a sign of account mismanagement.
  4. Your experience major losses with your accounts, even though the market is up.
  5. Your broker has pressured you to make an immediate investment purchase.
  6. Your broker denies you the opportunity to consult with a branch manager or compliance officer about your concerns.
  7. Your broker makes you a guarantee of a specific return on your investment and protection against losses.

If you feel your stock broker has engaged in misconduct, you may need to consult an attorney who understands securities fraud. You need to protect your best interests and you may need to seek litigation if your broker’s misconduct has impacted your financial future.

The securities Arbitration Procedure manual

David E. Robbins wrote the Securities Arbitration Procedure Manual used nationwide by law schools, law firms and brokerage firms.
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