Regla 3270 de la FINRA: Actividades comerciales externas

When you engage a registered investment adviser to manage your money, you want to make sure that nothing will interfere with your securities professional’s duty to you. FINRA Rule 3270, referred to outside business activities, gives transparency to potential conflicts of interest your investment adviser may have.  FINRA Rule 3270 requires your investment advisor to disclose their outside business activities. The purpose of FINRA 3270 is to keep FINRA member firms accountable to you, the client. If you are concerned that your securities professional might have violated certain disclosure rules, a knowledgeable FINRA arbitration lawyer can help you understand your options. What is FINRA Rule 3270? FINRA Rule 3270 prohibits broker-dealers from engaging in any outside business activities that involve the sale of securities unless they have first provided written notice to their employing firm. “Outside business activity” refers to a registered person’s involvement in offering, purchasing, or selling securities outside of their broker-dealer’s regular business activities. Need Legal Help? Let’s talk. or, give us a ring at 561-338-0037. FINRA Rule 3270 requires the disclosure of outside business activities. This FINRA regulation is a vital measure for protecting investors and ensuring that their advisor is prioritizing their interests. What is Considered a FINRA “Outside Business Activity”? FINRA outside business activities are broadly defined. FINRA Rule 3270 states that they include any paid work performed outside of a securities professional’s employment. This includes: This rule only requires an investment advisor to notify his or her employer of FINRA outside business activities. It does not require the investment advisor to do anything beyond provide a notification. Instead, the FINRA member firm makes a determination about what outside business activities are acceptable to the firm and its clients. The firm decides how or if outside business activities should continue to be carried out. Common Examples of FINRA Outside Business Activities Common examples of outside business activities include: Your investment advisor needs to report any of these activities to their employer under FINRA 3270.  The examples above are not exhaustive. An investment adviser also needs to report their wedding photography business or snorkel tour side-gig to their employer under the rules. FINRA rules about outside business activities apply to any paid work. Passive Investments Are Not Outside Business Activities While FINRA Rule 3270 casts a wide net, it allows investment advisers to make passive personal investments. Investing in diversified index funds or private securities transactions is not an outside business activity. Investment advisers may also put their personal funds into a blind trust. Blind trusts do not allow people to direct how their money is invested. Other FINRA rules require some disclosure about personal investments to ensure that your broker is being as transparent as possible about their potential conflicts of interest. FINRA Rule 3280 requires disclosure of private securities transactions. Your securities professional must strictly comply with this rule and its requirements. Your brokerage firm should ensure the investment adviser’s compliance with FINRA Rule 3280.  Responsibility of Brokerage Firms to Clients Once an investment advisor makes an outside business activities disclosure, the FINRA member firm must take important action. Each firm typically has its own form for reporting and its own protocol for review.  How Do Firms Determine Whether an Outside Business Activity Is Acceptable? Once a firm receives a disclosure, it needs to decide whether the outside business activities are acceptable. The FINRA member firm reviews all facts surrounding the disclosure. Then the firm answers two key questions to protect investors like you. First, Rule 3270 asks a FINRA member firm to consider all the circumstances surrounding the outside business activities. The review includes assessing the type of outside business, reviewing the time spent on the business, and confirming the type or amount of compensation received. The firm must decide whether outside business activities will interfere with the securities professional’s responsibilities to their employer and/or the firm’s clients. Second, Rule 3270 asks a FINRA member firm to think about whether outside business activities will be viewed by customers or the public as part of the member’s business. This review assesses whether a client would confuse the investment adviser’s outside business activities with their securities business.  How Do Firms Address Outside Business Activities That Conflict with an Advisor’s Duties? If the firm determines that the investment adviser’s outside business activities interfere with their responsibilities to the firm or its clients, then the firm should limit or prohibit the activity. FINRA Rule 3270 also requires firms to maintain a record of compliance. It is the firm’s responsibility to keep records of all outside business activities disclosures and compliance reviews. Brokerage firms are responsible to their clients to ensure that they are providing appropriate and conflict-free service in managing client assets. FINRA member firms must represent that their investment advisers are not engaging in outside business activities that compromise client interests. If you believe that your brokerage firm has failed to hold investment advisers accountable to FINRA Rule 3270 or otherwise adhere to conflict of interest rules, the firm may be liable for investor losses. Now may be the time to file a FINRA complaint against your advisor or broker. Have You Been Harmed by Your Investment Advisor’s Outside Business Activities? If you are an investor with concerns that your investment professional has failed to disclose important information to you, please call The Law Offices of Robert Wayne Pearce, P.A. Our FINRA arbitration lawyers have successfully represented individuals harmed by broker and investment advisor negligence or misconduct for over 40 years. Cases involving violations of FINRA rules are complex. Attorney Pearce has the expertise and experience to help you navigate any kind of securities or investment dispute. Contact our team today to discuss an evaluation of your potential case. Our team has recovered over $170 million for our clients, and we want to help you too.

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Anuncio del ganador de 2022 - Beca Robert Wayne Pearce de concienciación sobre el fraude a los inversores

Tal y como prometimos, hoy anunciamos el ganador de 2022 de la Beca Robert Wayne Pearce de Concienciación sobre el Fraude al Inversor. A lo largo del año, recibimos solicitudes de más de 75 estudiantes de 44 escuelas de todo el país que escribieron ensayos de calidad sobre la aplicación Robinhood y sobre si era una buena herramienta para los inversores novatos o solo un juego para aprovecharse de ellos. La ganadora de la beca de 2.500 dólares es Alecia Ann Des Lauries, estudiante del Alexandria Technical & Community College, situado en Alexandria, Minnesota, que escribió: La aplicación Robinhood Investment es una de las favoritas entre los millennials y la Generación Z. El panel de control es elegante y fácil de entender. Es una plataforma "sencilla" y "fácil" que "democratiza la inversión para todos". Cualquiera puede comprar acciones, EFT y criptomonedas con solo pulsar un botón. No hay comisiones, ¡y puedes empezar a invertir con sólo 1 dólar! ¿Qué puede no gustar? Resulta que mucho. Su hábil marketing y su facilidad de uso ocultan una fea verdad: la aplicación es una de las peores formas de empezar a invertir. Toda la plataforma es un juego apenas velado que explota a los inversores primerizos, que constituyen más de la mitad de su base de usuarios (Segal, 2021). Robinhood promociona agresivamente los regalos. Los nuevos clientes reciben acciones gratis. Si recomiendan la aplicación a sus amigos, pueden conseguir más acciones gratuitas. Hay frecuentes "sorteos" de criptomonedas y acciones. Las personas influyentes de las redes sociales atraen a nuevos usuarios con ofertas únicas de acciones gratuitas. Una vez que te registres, la aplicación te ayudará a elegir tu primera acción. Después, puedes suscribirte a su tarjeta de débito, la "Cash Card", con la que puedes ganar bonificaciones, pero por reinvertir en acciones y criptomonedas sólo en su plataforma. Una vez dentro, te empujan a invertir. Hay listas de acciones "Populares" y "Tendencias". Los widgets recomiendan qué acciones y criptomonedas comprar o vender. Los mensajes de celebración y las animaciones se activan cuando compras, vendes o alcanzas ciertos hitos. El diseño artístico, brillante y caricaturesco, es divertido pero desarmante. Es fácil olvidar que estás operando con dinero real y asumiendo riesgos reales. Es intencionado. Así es como Robinhood genera ingresos. Alrededor del 70% (Curry, 2022) de sus ingresos procede del pago por el flujo de órdenes, lo que significa que recibe pagos al dirigir las operaciones a los creadores de mercado. Cuantas más operaciones se produzcan, más ingresos recibe Robinhood. Así es como la empresa recaudó 331 millones de dólares en el primer trimestre de 2021 (Geron, 2021). Lo más revelador es que la propia plataforma es simplista. No hay fondos de inversión ni renta fija para los inversores más conservadores. No hay cuentas IRA ni 401(k)s -un enorme perjuicio para el 55% de los Millennials (Loudenback, 2019) y el 90% de la Generación Z (Koterbski, 2022) que no tienen cuentas de jubilación. Robinhood no ofrece divisas o futuros para inversores más experimentados, y mucho menos filtros de acciones o ETF para inversiones intensivas en investigación. Las herramientas de investigación más rudimentarias están detrás de un muro de pago, e incluso así, son insuficientes en comparación con los corredores de la competencia. Los inversores más experimentados acuden rápidamente a otros brokers que ofrecen herramientas más sólidas. Eso es porque esos inversores no son el mercado objetivo de Robinhood. Y la plataforma quiere seguir siéndolo. Los recursos educativos, aunque han mejorado, siguen siendo ridículamente superficiales. No hay casi nada sobre gestión de riesgos; la mayor parte del "riesgo" que verás está en sus descargos de responsabilidad. Robinhood habla de boquilla de ayudar a crear "riqueza para una nueva generación", mientras equipa a sus usuarios con herramientas inferiores y una educación deficiente. No es de extrañar que muchos columnistas criticaran a Robinhood por parecerse demasiado a un casino. Y como dice el refrán, ¡la casa siempre gana! Agradecemos a todos los demás solicitantes su esfuerzo y anunciamos que la próxima beca, que se concederá el 15 de diciembre de 2023, se otorgará al estudiante que escriba el ensayo más sesudo sobre los Riesgos de invertir en el mercado de criptodivisas.

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Prescripción de la FINRA: Una visión completa

The FINRA Statute of Limitations applies to claims and disputes that arise under the rules, regulations, or statutes administered by FINRA. Investment brokers have a duty to treat their clients honesty and with integrity. Those who take advantage of, mislead, or steal from their clients shake the investing industry’s foundation. Regrettably, broker misconduct occurs all too often.  You need representation from a FINRA arbitration attorney who has the knowledge, skill, and extensive experience to help you recover your losses if you are a victim of investment broker misconduct. Robert Wayne Pearce and his staff with The Law Offices of Robert Wayne Pearce, P.A., have over 40 years of experience fighting on behalf of investors victimized by broker misconduct. Contact us today to protect your rights.  Key Takeaways Investment brokers have a duty to their clients to be honest and act with integrity. FINRA is a non-profit corporation that works with the Securities and Exchange Commission to protect investors from brokerage firms’ wrongdoing. You need representation from a FINRA arbitration attorney who has the knowledge, skill, and extensive experience to help you recover your losses if you are a victim of investment broker misconduct. Investors aggrieved by their broker must understand that they do not have six years to file a court claim – in many instances, state statutes of limitations are much shorter than FINRA’s arbitration eligibility time frame. Filing your claim as soon as possible is the best way to protect your legal rights – if you suspect that you lost money in the market because of broker fraud, negligence, or misconduct. What Is FINRA? FINRA is an acronym for Financial Industry Regulatory Authority. FINRA is a self-regulating organization or SRO. As an SRO, FINRA is a non-profit corporation that works with the Securities and Exchange Commission to protect investors from brokerage firms’ wrongdoing.  FINRA offers professional examinations that certify applicants as investment brokers. It also provides continuing education programs to investment professionals to promote fairness and transparency in the securities markets.  FINRA has the authority to make rules and regulations that govern broker-investor relationships. It takes action to discipline brokers guilty of misconduct. Additionally, FINRA educates investors about their investment goals, strategies, and safe investing. What is the FINRA Statute of Limitations? FINRA’s procedural rules indicate that investors have six (6) years to file a claim for arbitration with FINRA. The six-year period starts when the event that gives rise to the legal claim occurred. Need Legal Help? Let’s talk. or, give us a ring at 561-338-0037. Note: FINRA will dismiss any claim that FINRA decides missed the eligibility deadline. The arbitration panel will rule on eligibility if the parties disagree on whether the eligibility period elapsed. Do not delay filing. Speak with a FINRA lawyer about any questions about your arbitration claim. FINRA tolls, or stops, the eligibility period if the parties file the case in court. Moreover, FINRA’s procedural rules state that courts will toll the statute of limitations when the case remains in FINRA’s jurisdiction. Why Does FINRA Have a Statute of Limitations? There are a number of reasons why FINRA imposes a statute of limitations on investor claims. The first is to ensure that evidence related to the claim can still be reasonably obtained. This ensures that investors don’t wait until it’s too late to pursue their claim, and also protects brokerages from false or fraudulent accusations brought years after the events in question. In addition, FINRA’s statute of limitations helps to protect the integrity and reliability of its arbitration process. By ensuring that claims are brought within a reasonable timeframe, FINRA is able to accurately and fairly assess all evidence related to an investor claim in order to render an informed decision on their case. FINRA offers arbitration and mediation services to investors who file a complaint against their broker or brokerage firm. The victimized investor must file their claim with FINRA’s arbitration board within a specified period of time. The investor contemplating pursuing a legal cause of action for their losses should be aware of other deadlines that affect their claim. FINRA Statute of Limitations Concerns FINRA’s arbitration eligibility rules are distinct from federal or state statutes of limitations. Investors aggrieved by their broker must understand that they do not have six years to file a court claim. In many instances, the statutes of limitations are much shorter than FINRA’s arbitration eligibility time frame. Section 10(b) of the Securities and Exchange Act of 1934 and its regulations grant investors the right to sue their broker or advisor for fraud or any other unfair practice. Section 10b and its regulations found at 17 C.F.R. 240.10b-5 have a two-year statute of limitations.  Under these rules, the two-year statute of limitations starts when the investor discovers the fraud or no more than five years after the alleged fraud occurred. The time when the investor discovered the fraud is essential to understand. Otherwise, you might unwittingly allow the statute of limitations to run out before having the chance to file your claim. The statute of limitations starts when the investor knew or should have known about the fraud.  You must understand your investments and how they work so you can uncover evidence of fraud as soon as possible. If you are unsure if you are the victim of fraud, you must contact a knowledgeable and reputable securities attorney to protect your rights and investment. State Statutes of Limitations Some states will allow you to file a lawsuit in state court for a violation of state law. Filing in state court might be the better option for an aggrieved investor. Statutes of limitations for state law claims could be as short as two years.  How Long Do I Have to File a Claim Against My Broker? Filing your claim as soon as possible is the best way to protect your legal rights. Simply because FINRA agreed to arbitrate a claim within six years does not mean you should wait six years to file. Instead, you should be...

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¿Qué es la mala praxis del asesor financiero?

As an investor, you expect your financial advisor to properly manage your investment portfolio. Unfortunately, this is not always what happens. Financial advisors owe their clients certain obligations with respect to their investment accounts. Failure to adhere to these obligations can result in a claim for financial advisor malpractice. In certain circumstances, the financial fraud committed by your financial advisor will be obvious. For example, if your financial advisor forged your signature on a document, he or she clearly committed misconduct. However, most financial malpractice claims are not this straightforward.  The securities attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped hundreds of investors recover losses caused by financial advisor malpractice. Contact us today for a free consultation. What Is Financial Advisor Malpractice? Financial advisor malpractice is a term that refers to a financial advisor’s failure to satisfy the fiduciary standards and obligations that are in place to protect investors. As fiduciaries, financial advisors are legally bound to act in their clients’ best interests and not exploit them for personal gain. Need Legal Help? Let’s talk. or, give us a ring at 561-338-0037. In some cases, financial advisor malpractice can be straightforward. Fabricating documents, forging a client’s signature, or lying to a client about the status of an investment are all examples of clear financial advisor malpractice. Other times, it can be more subtle and difficult to identify. As such, most investors become aware that they’ve been the victim of financial advisor malpractice only when their investments start to decline in value. This is often after it’s too late to recoup their losses, as the trusted advisor has already moved on to work with new clients who have yet to suffer the same fate. Note: If you believe you are a victim of financial advisor malpractice or investment fraud, the securities fraud lawyers at The Law Offices of Robert Wayne Pearce, P.A. can help. We have a history of successfully recovering financial losses for clients who have been hurt by unethical or fraudulent practices. Contact us today at (800) 732-2889 or fill out one of our short contact forms. What Are My Financial Advisor’s Obligations and Duties to Me?  Registered financial advisors must adhere to certain fiduciary duties, or obligations, with respect to their clients. Financial advisors who are not registered and are not making securities recommendations to retail customers still owe their clients certain obligations, but they are not as stringent as fiduciary duties. Fiduciary Duties Registered investment advisors are bound by fiduciary duties to their clients. The Investment Advisers Act of 1940 defines the role and responsibilities of investment advisors. At its core, the purpose of this act was to protect investors.  A financial advisor owes their client a duty of care and a duty of loyalty. The Securities and Exchange Commission (SEC) interprets these fiduciary duties to require a financial advisor to act in the best interest of their client at all times. The SEC provides additional guidance for each fiduciary duty specifically. The duty of care requires that an investment advisor provide investment advice in the client’s best interest, in consideration of the client’s financial goals. It also requires that a financial advisor provide advice and oversight to the client over the course of the relationship. The duty of loyalty requires an investment advisor to disclose any conflicts of interest that might affect his or her impartiality. It also means that the financial advisor is prohibited from subordinating his or her client’s interests to their own. Related Read: The Most Common Examples of Breach of Fiduciary Duty (And What to Do) The Suitability Rule Broker-dealers in the past were subject to less demanding obligations.  The Financial Industry Regulatory Authority (FINRA) regulates broker-dealers in the United States. FINRA previously imposed a suitability obligation on broker-dealers that only required them to make recommendations that were “suitable” for their clients.  Under the suitability rule, a broker-dealer could recommend an investment only if it was suitable for the client in terms of the client’s financial objectives, needs, and risk profile. Broker-dealers did not owe a duty of loyalty to their clients and did not have to disclose conflicts of interest.  Recently, however, FINRA amended its suitability rule. Regulation Best Interest FINRA recently amended its suitability rule to conform with SEC Regulation Best Interest (Reg. BI), making it clear that stockbrokers now uniformly owe certain heightened duties when making recommendations to retail customers.  As with fiduciary duties, under Reg. BI, all broker-dealers and their stockbrokers now owe the following duties:  Disclosure,  Care,  Conflicts, and  Compliance.  However, it’s important to remember that they owe these duties only when they make recommendations regarding a securities transaction or investment strategy involving securities to a retail customer.  While these changes are still new, one thing is certain—the Reg. BI standard is definitely a heightened standard compared with the previous suitability standard.  Forms of Financial Advisor Malpractice Investors usually hire financial advisors because they do not have experience in investing. With this lack of experience, how can an investor know when a financial advisor is committing malpractice? There are several ways financial advisors can commit financial malpractice. Lack of Diversity Financial advisors have a duty to ensure your investment portfolio is properly diversified to include a variety of investment assets. That may include a mixture of stocks, bonds, or mutual funds in multiple different sectors.  A portfolio that lacks diversification is likely to result in significant losses to the client in the event of a market downturn in a specific sector. If you believe your financial advisor failed to properly diversify your portfolio, contact a securities attorney today. The attorneys at The Law Offices of Robert Wayne Pearce, P.A., have significant experience handling these types of cases and will ensure the financial advisor responsible for your losses is held accountable.  Your Investments Are Unsuitable Every investor is unique. That means financial advisors must consider the specific goals and needs of each individual client before recommending investments. A financial advisor must consider a client’s risk...

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¿Se puede demandar a una empresa de corretaje por pérdidas de inversión?

If you have experienced significant investment losses, you may be wondering if you can sue your brokerage firm. Can You Sue a Brokerage Firm? Yes, you can sue a brokerage firm to help recover any investment losses that you have suffered due to a broker’s negligence or fraud. Lawsuits are typically filed against brokerage firms rather than individual brokers because the firm is vicariously (automatically) liable for the actions of all their employees. Need Legal Help? Let’s talk. or, give us a ring at 561-338-0037. In addition, brokerage firms are directly responsible for supervising its employees and ensuring that they are adhering to industry regulations and can be held liable for their supervisory failures. FINRA rules require a brokerage firm to establish policies and procedures that monitor brokers’ activities in order to avoid investor losses and investment fraud. As such, if the brokerage firm has failed to supervise its employees properly and this has led to your investment losses, you may have a claim against the firm. IMPORTANT: Filing a successful lawsuit against a brokerage firm is a complex undertaking. You will need to prove that the firm did not properly supervise its employees and that this failure led to your investment losses. If you decide to pursue legal action, it is important to consult with an experienced securities lawyer who can help you navigate the process and build a strong case against the firm. When Can a Brokerage Firm be Held Liable for Investment Losses? Despite having issues with an individual broker, many investors are surprised to learn that lawsuits against an individual are actually quite rare. The vast majority of lawsuits that are filed in connection with investment losses are brought against the brokerage firm that employed the broker. A brokerage firm is required to properly supervise its employees and to ensure that they are adhering to FINRA rules and regulations. If the firm fails to do so and this results in investors suffering losses, the firm can be held liable. It’s unfortunately common for independent brokerage firms to hire under-qualified brokers with little to no experience in the industry. These brokers are often given very little training and are left to their own devices when it comes to handling clients’ investments. As a result, these inexperienced brokers can make serious mistakes that cost investors a lot of money. Due to the fact that brokerage firms are required to properly supervise their employees, the liability for investment losses often falls on the brokerage firm that hired the broker rather than the individual broker him or herself. In addition, under Section 20(a) of the Securities and Exchange Act, a brokerage firm can be held liable for the negligence of its individual brokers and advisors. In essence, the law tends to hold the brokerage firm liable for the misconduct of its employees unless the brokerage firm acted in good faith and did not indirectly cause the misconduct which has resulted in the investors’ losses. Note: The process of establishing liability against a brokerage firm is complex and it can be difficult to prove that the firm is responsible for your investment losses. It is in the best interest of the brokerage firm to avoid liability, so they will likely have a team of lawyers working to protect them. As such, if you decide to pursue legal action against a brokerage firm, it is important to consult with an experienced securities lawyer who can help you navigate the process and build a strong case against the firm. The Law Offices of Robert Wayne Pearce P.A. has over 40 years of experience representing those who have been wronged by a fiduciary and have recovered over $170 million in investment losses for our clients. If you believe that you have been the victim of broker or brokerage firm misconduct, we can help. Contact us today for a free consultation. When Does the Liability Fall on the Individual Broker? There are many circumstances where the liability for investment losses may fall on the individual broker. For example, if a broker makes material misstatements or omissions about an investment, the broker can be held liable for any losses that result from those misrepresentations. Additionally, if a broker engages in fraudulent or illegal activity, the broker can be held liable for any losses that occur. All brokers and financial advisors are required to adhere to a strict code of ethics and owe their clients a fiduciary duty. A fiduciary duty is a legal obligation to act in the best interest of the client. If a broker breaches this duty and causes the client to lose money, the broker can be held liable. There are a wide variety of circumstances where a broker may breach their fiduciary duty to a client. For a more complete discussion on when the liability for investment losses falls on the individual broker, please see our article on “How to Sue a Financial Advisor or Stockbroker Over Investment Losses.” Have You Suffered Investment Losses? Take Legal Action Today. If you have suffered investment losses, you may be able to take legal action against the brokerage firm or individual broker responsible for your losses. The first step is to consult with an experienced securities lawyer to discuss your case and determine what legal options are available to you. The Law Offices of Robert Wayne Pearce P.A. has over 40 years of experience representing those who have been wronged by a fiduciary and have recovered over $170 million in investment losses for our clients. If you believe that you have been the victim of broker or brokerage firm misconduct, we can help. Contact us today for a free consultation.

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Qué hacer cuando un asesor financiero le roba dinero

Financial advisors are highly trusted professionals who help make decisions that impact your economic future. When that trust is broken through a bad or negligent act, the investor suffers and the financial advisor must be held accountable. When you’re looking at your investment losses, in the worst-case scenario, you may be asking yourself if a financial advisor can steal your money. Can Financial Advisors Steal Your Money? Yes, an unethical financial advisor can be in a position to steal money from you, especially if you have given them direct access to your money. Because of this, a vast majority of reputable financial advisors never take ownership of your money to protect your best financial interests. Need Legal Help? Let’s talk. or, give us a ring at 561-338-0037. It is recommended that you always keep control over your investments and never give any financial advisor full discretion over your accounts. Giving an advisor direct access allows them to steal money with ease. Avoid doing so unless you’re 100% confident in the individual you’re dealing with. Note: If you believe your financial advisor stole your money, there are several options for you to recover. We recommend speaking with an experienced investment fraud lawyer to learn more about your rights and how you may recover your losses. The Fiduciary Duty of a Financial Advisor All financial advisors are held to a standard of care when dealing with investors. Registered financial advisors have a higher fiduciary duty to their clients under the Investment Advisers Act of 1940. This is the highest legal standard of care and requires financial advisors to act in the best interest of their clients, make suitable investments, and disclose relevant information to you.  Knowing whether your financial advisor is registered with the U.S. Securities and Exchange Commission (SEC) or a state securities regulator is important because if the advisor breaches the fiduciary duty, you can bring a claim against the financial advisor through the Financial Industry Regulatory Authority (FINRA). FINRA is the governing organization that creates and enforces rules for advisors and their firms and assists in resolving disputes between advisors and investors.  Do You Have a Claim? If your financial advisor outright stole money from your account, this is theft. These cases involve an intentional act by your financial advisor, such as transferring money out of your account. However, your financial advisor could also be stealing from you if their actions or failure to act causes you financial loss.   Losing money through investment is not enough to bring a claim against your financial advisor. Remember, there is no guarantee of return when investing. Even if your financial advisor made the recommendation, under federal securities law and FINRA regulations, you cannot hold your advisor liable simply because they lost you money. You need a viable cause of action, such as a breach of fiduciary duty, negligence, or malpractice. Types of Claims Against Your Financial Advisor  Understanding securities law and FINRA regulations are crucial to know whether you have a valid claim against your financial advisor. The investment loss recovery attorneys at The Law Offices of Robert Wayne Pearce P.A. have over 40 years of experience in securities and investment law. They have helped countless investors recover their financial losses caused by bad or negligent acts by their financial advisors. The Law Offices of Robert Wayne Pearce P.A. have handled hundreds of cases involving many types of misconduct by financial advisors. Negligence In a negligence claim, you do not need to show that the financial advisor intentionally acted in a harmful way, but rather that the advisor failed to do something they had an obligation to do and caused the economic loss. For example, your advisor may have made an unsuitable investment by failing to take into consideration your risk tolerance. If you lost money based on the recommended investment, it may be appropriate to file a claim for negligence against your financial advisor.  Breach of Fiduciary Duty A financial advisor who breaches his fiduciary duty has failed to meet the required standard of care. You may have a valid claim for breach of fiduciary duty if your advisor failed to execute your stated objectives or did not disclose information about a product. Other examples of breaching the fiduciary duty include: In each of these instances, the financial advisor did not act in your best interest.  Failure to Supervise A brokerage firm is responsible for supervising the actions of its financial advisors and any other employees. If the firm fails to do this, it can be held liable for your financial losses.  What You Can Do There are several stages of resolution to recover your financial losses. Depending on the facts of your case, you may be able to resolve it and recover without any formal proceedings, or you may have to litigate. The attorneys at The Law Offices of Robert Wayne Pearce P.A. have helped investors in all stages and have successfully recovered over $170 million in losses for our clients.  Review Customer Agreement If you believe your financial advisor stole money from you, either directly or indirectly through losses in your account, you should first review your customer agreement. Understand what sort of authority you gave your financial advisor and if there is a mandatory arbitration clause. This clause is common in most customer agreements with brokerage firms. These clauses often state that you waive your right to file a lawsuit against your advisor and agree to engage in a FINRA arbitration proceeding instead.  Informal Dispute Resolution Claims against financial advisors are incredibly complex legal matters. There are informal options available, however. Even at this stage, you should contact an investor loss recovery attorney for assistance. FINRA, which regulates the investment industry, instructs investors to first pursue informal dispute resolutions before filing a claim against their financial advisor.  Depending on the severity of the financial advisor’s misconduct, you may be able to resolve the matter directly with your advisor or the firm’s compliance department. If this is not suitable...

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¿Puede un corredor vender mis acciones sin mi permiso?

Has mirado en tu cuenta de inversión y has descubierto que varias de tus acciones se han vendido sin tu permiso. Usted no dio el visto bueno, así que es comprensible que esté confundido, frustrado y enfadado. ¿Qué debe hacer ahora? En primer lugar, tiene que determinar quién vendió sus acciones. Si fue su agente de bolsa, es posible que se pregunte si su agente puede vender acciones sin su permiso. ¿Puede mi agente vender mis acciones sin permiso? Su agente de bolsa no puede vender acciones sin su permiso, a menos que usted haya dado su autorización por escrito para hacerlo. Esto se denomina negociación no autorizada y no está permitido por las normas del sector de los valores. ¿Necesita ayuda legal? Hablemos o llámenos al 561-338-0037. Sin embargo, aunque siempre debe obtenerse la autorización correspondiente, un corredor no tiene por qué obtener un permiso expreso para cada transacción. En este artículo repasaremos las dos circunstancias en las que un corredor puede vender valores sin previo aviso ni consentimiento del cliente. Nota: Si cree que ha sufrido pérdidas en su inversión como resultado de una operación no autorizada, debería hablar con un abogado especializado en fraudes de agentes de bolsa sobre sus derechos legales. ¿Es su cuenta de inversión una cuenta discrecional? El primer caso en el que un agente de bolsa puede vender acciones sin su permiso es si está negociando en una cuenta discrecional. Una cuenta discrecional es aquella en la que el corredor tiene la autoridad para tomar decisiones de inversión en nombre del cliente, sin la aprobación previa de éste. Si no está seguro de si tiene o no una cuenta discrecional, conozca la diferencia entre una cuenta no discrecional y una discrecional aquí. Para que un corredor pueda vender acciones en una cuenta discrecional, debe tener lo que se llama "discreción". Esto significa que el corredor debe tener motivos razonables para creer que la venta es en el mejor interés del cliente. La palabra clave en esta definición es "razonable". Esto significa que un corredor no puede simplemente vender acciones sin su permiso porque le apetezca. Debe haber una razón para la venta, como la expectativa de una caída del mercado u otro acontecimiento adverso que pueda afectar al valor del título. Si no está de acuerdo con una decisión tomada por su corredor en una cuenta discrecional, tiene derecho a oponerse y a que la decisión sea revisada por un supervisor. ¿Hay un ajuste de márgenes en su cuenta? El segundo caso en el que un corredor puede vender acciones sin su permiso es en respuesta a un ajuste de márgenes. Un ajuste de márgenes es cuando el corredor exige que el cliente deposite fondos o valores adicionales para cubrir el coste de las acciones compradas con margen. Técnicamente, es probable que usted le haya dado permiso cuando abrió su cuenta de margen. Si no cumple el requerimiento de margen, el corredor tiene derecho a vender los valores para cubrir la deuda de margen. Esto se hace para proteger los intereses del corredor y de la institución de préstamo de valores. Operar con una cuenta de margen es una inversión arriesgada y puede dar lugar a pérdidas considerables. Por este motivo, es importante entender los riesgos antes de abrir una cuenta de margen. Puede obtener más información sobre la negociación con margen en el sitio web de FINRA. Obtenga una segunda opinión: Póngase en contacto con un abogado especializado en fraude bursátil hoy mismo Si ha descubierto que su agente de bolsa ha vendido acciones sin su permiso, puede sentirse abrumado y confundido. Puede que se pregunte cuáles son sus derechos legales y si puede o no emprender acciones. La mejor manera de determinar sus derechos y opciones legales es hablar con un abogado especializado en fraude bursátil. Las Oficinas Legales de Robert Wayne Pearce, P.A. se especializa en la representación de los inversores que han sufrido pérdidas como resultado de fraude de inversión. Ofrecemos consultas gratuitas y sin compromiso para que pueda aprender más sobre sus derechos y opciones legales. Llámenos hoy mismo al (800) 732-2889 para hablar con un abogado especializado en fraudes bursátiles.

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Comercio de opciones frente a comercio de márgenes: Los riesgos y beneficios de ambas

When it comes to trading stocks and other securities, there are a few different approaches that investors can take. Two of the most popular methods are options trading and margin trading. Both of these strategies can be profitable, but they each come with their own set of risks and rewards. In this article, we’ll break down the key differences between options trading and margin trading. As an investor it is important to understand the risks and benefits of each before deciding if either of these investment strategies is right for you. What is the difference between options trading and margin trading? Margin trading offers investors a way to control a larger number of shares than they could with just their own money with the added risk that losses could be amplified. Options trading, on the other hand, provides investors to buy or sell securities at a later date for a set price and is considered to be low risk and low returns. Need Legal Help? Let’s talk. or, give us a ring at 561-338-0037. Note: Trading on a margin is considered a risky investment strategy. If you have lost money due to an advisor or broker who has unsuitably recommended margin trading, you should speak to an experienced investment fraud lawyer to discuss your legal options. What is Options Trading? Options trading is a type of investing where you trade contracts that give you the right, but not the obligation, to buy or sell an asset at a set price on or before a certain date. Options are typically used as a way to hedge against other investments, or to speculate on the future price of an asset. When you buy an option, you have the right to buy or sell the underlying asset at a set price. If the price of the asset goes up, you can make a profit by selling it at the higher price. If the price goes down, you simply don’t exercise your option and don’t incur any loss. There are two types of options: call options and put options. What is a call option in stocks? A call option is a contract that gives you the right to buy an security at a set price within a certain time frame. The price you will pay for the security is called the strike price. The time frame in which you can buy the security is called the expiration date. If the stock price is above the strike price when the expiration date arrives, you will exercise your option and buy the stock at the strike price. If the stock price is below the strike price, you will let the option expire and not incur any loss. What is a put option in stocks? A put option is a contract that gives you the right to sell an security at a set price within a certain time frame. If the stock price is below the strike price when the expiration date arrives, you will exercise your option and sell the stock at the strike price. If the stock price is above the strike price, you will let the option expire and not incur any loss. What are the benefits of options trading? Options trading is a relatively low-risk way to invest in stocks and other securities. Because you are not obligated to buy or sell the underlying asset, you can simply let the option expire if it is not profitable. Options trading can also be used to generate income through premiums. When you sell an option, you collect a premium from the buyer. If the option expires without being exercised, you keep the premium as profit. What are the risks of options trading? The biggest risk of options trading is that you may not correctly predict the future price of an asset. If you buy a call option and the price of the underlying asset goes down, you will lose money. If you buy a put option and the price of the underlying asset goes up, you will also lose money. In order to make money from options trading, you must correctly predict which direction the price of an asset will move. Can you sue your broker for options trading losses? Yes, you can sue your broker for options trading losses. However, it is important to understand that your broker is not obligated to make money for you. They are only required to provide you with the resources and information necessary to make informed investment decisions. If you lose money due to bad investment decisions, you cannot sue your broker. What is Margin Trading? Margin trading is when you buy or sell stocks (or other types of securities) with borrowed money. This is also sometimes called “trading on margin.” The money you borrow is called a margin loan. This means you will be going into debt in order to make an investment. Typically the loan comes from your broker, and you will repay it with interest at a later date. Buying on a margin may have a lot of appeal compared to using your own money, but it is very important to understand the risks before you do it. Margin trading is a form of leverage. Leverage is when you use something (in this case, money) to control a much larger amount of something else. Note: If the investment doesn’t make money, you will have to pay back the loan with interest regardless. This means that the investment losses can be much greater than if you had just used your own money. What are the risks of margin trading? The biggest risk of margin trading is that you may lose more money than you originally invested. When investors trading on a margin and they experience losses, they may be required to pay back more money than they originally borrowed (Margin Call). A margin call is when your broker asks you to add more money to your account because the value of your securities has fallen. If you cannot afford to pay the...

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¿Qué es la liquidación forzosa?

If you find yourself reading this article, it’s likely because you’re going through a forced liquidation. Forced liquidation, sometimes referred to as forced selling, is the process by which an investor is forced to sell their assets, typically by a broker or financial advisor, in order to meet margin calls or repay debts. In this guide we will go over what forced liquidation is, how it works, and what you can do if you find yourself in this situation. What is Forced Liquidation? Forced liquidation, also known as forced selling, occurs when an investor is forced to sell their assets or securities, typically by a broker or financial advisor, in order to repay debts or meet margin calls. Investment Losses? Let’s talk. or, give us a ring at 561-338-0037. The term “forced liquidation” usually refers to the involuntary sale of assets, but it can also refer to the situation where an investor is given a choice between selling their assets or having them sold by the broker. Forced liquidation often happens when an investor has been unable to meet a margin call or has failed to repay debts. When this occurs, the broker or exchange will take possession of the assets and sell them in order to recoup the money that is owed. How Forced Liquidation Works If you find yourself in a forced liquidation situation, it’s likely because you have failed to meet a margin call or have been unable to repay debts. When this occurs, the broker or exchange will take possession of the assets and sell them in order to recoup the money that is owed. In most cases, the assets are sold at a loss, which can be significant. Forced Selling within a Margin Account If you have a margin account, your broker may force you to sell your securities if the value of your account falls below the minimum required amount. Within a margin trading account, this is known as a margin call. Your broker or advisor will typically give you a set period of time to bring your account up to the minimum value, and if you are unable to do so, they will sell your securities to repay the debt. It’s important to note that you may not be able to control which securities are sold, and you may not be able to get the same price for them that you paid when you purchased them. Forced Selling within a Securities-Backed Lines of Credit If you have a securities-backed line of credit (“SBL”), your broker or financial advisor may force you to sell your securities if the value of your account falls below the minimum required amount. Your broker or advisor will typically give you a set period of time to bring your account up to the minimum value, and if you are unable to do so, they will sell your securities to repay the debt. It’s important to note that you may not be able to control which securities are sold, and you may not be able to get the same price for them that you paid when you purchased them. What is margin call? A margin call is a demand from a broker or exchange for an investor to deposit more money or securities into their account. Margin calls are typically made when the value of the securities in an account falls below a certain level, known as the margin requirements. If an investor fails to meet a margin call within the grace period, the broker or exchange has the right to sell the securities in the account in order to cover the shortfall. Can a Broker Liquidate an Investor’s Account without Notice? Some investors learned the hard way the true meaning of “forced liquidation” when their brokers sold their securities without much warning in order to meet margin calls. In most cases, brokers will give investors a grace period to meet margin calls, and they are not required to sell the securities in an account without notice. There can be cases where a broker may sell securities without notice (a “Blow-Out), with the investor suffering substantial investment loss, this is typically only done in the most extreme cases where there is a fear of an imminent market crash and the broker wants to protect their own interests. We have heard from many investors that when they complained to their respective brokerage firms, they were told that they signed contracts that allowed the broker-dealers to do exactly what they did to them and that they had no recourse. Without doubt, contracts with those onerous contract conditions were signed, but that does not mean that the terms of the contract are enforceable. Can You Take Legal Action After a Forced Liquidation? If you have been the victim of a forced liquidation, there may be legal action that can be taken against a broker-dealer for breach of fiduciary duty and other causes of action. You may not have recourse for the issuance of margin calls and/or forced liquidations of all or some of your securities on short notice or no notice at all, but that doesn’t mean that the broker-dealer did nothing wrong. IMPORTANT: The most important question to ask is: what happened when the securities-backed line of credit and/or margin accounts were recommended by your broker or financial advisor to be opened in the first place. Depending on the situation that led to you opening up your securities-backed line of credit and/or margin accounts, you may have legal action you can take to help recover your investment losses. In some cases, the recommendation to open the account may have been unsuitable for you. In other words, if your broker or financial advisor recommended that you open an account that was too risky for you given your investment profile, then they may be held responsible for the losses that you incurred as a result of the forced liquidation. We’ve Helped Investors Who’ve Suffered Losses Due to Forced Liquidation The securities fraud attorneys at the Law Offices of Robert Wayne...

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