Failure to Supervise

Securities Law and Securities Arbitration Attorneys – New York, United States

Brokerage Firm Failure to Supervise

Representing the Investor

Do mounting losses, bad recommendations and questionable activity by your broker have you wondering: “Who’s minding the store?” You may be able to recover your losses if they were the result of your brokerage firm’s failure to supervise its brokers.

At Kaufmann Gildin & Robbins LLP , our lawyers have extensive experience dealing with customer complaints against brokers, including those involving a brokerage firm’s failure to supervise. Firms are automatically responsible under the law for the activities of their brokers. They are also responsible to directly supervise their brokers.

The Financial Industry Regulatory Authority (FINRA) has rules of conduct for every member or member firm, including Rule 3010 that addresses supervision. This rule requires that member firms establish and maintain a reasonable system to reasonably supervise the activities of each registered representative. All broker-dealers, registered representatives and individuals who trade securities or act as brokers for traders are subject to those regulations.

Why are these rules important? Lack of proper supervision can create an environment that is ripe for broker misconduct and investment wrongdoing, including churning, unsuitability, unauthorized trading, breach of fiduciary responsibility, and misrepresentation / omission.

Contact us today if you feel your recent investment losses are the result of your brokerage firm’s failure to properly supervise its brokers.

Violations of the FINRA’s rules of conduct regarding supervision include:

  • Failure to properly maintain accurate records of brokerage accounts
  • Failure to review daily trading activity, including investments “away from” the firm
  • Failure to establish, maintain and enforce written supervisory procedures
  • Failure to maintain proper separation between trading and back office functions
  • Failure to thoroughly investigate all customer complaints

Defending Brokerage Firms

In addition to representing investors, our firm has an excellent reputation for defending brokerage firms against complaints alleging negligence and failure to supervise.

Violations of FINRA’s rules governing supervision are taken very seriously by the regulators and could leave your firm facing substantial penalties.

Contact us today for smart legal advice and adept representation from securities law and securities arbitration attorney who are nationally-known for their skill and experience in handling securities disputes. Two of the firm’s attorneys are former State Securities Prosecutors and Directors of the American Stock Exchange.

The New York lawyers at Kaufmann Gildin & Robbins LLP provide astute advice and counsel and dedicated, effective representation to investors and brokers throughout New York City, the United States, and internationally