The Law Offices of Robert Wayne Pearce, P.A. has experience handling unauthorized trading and investor disputes with broker-dealers. Our unauthorized trading lawyers understand the complexities of securities law, as well as the impact that unauthorized trading can have on an investor’s financial future.
Brokers must get approval from clients before making trades in a standard brokerage account.
When a broker makes a trade (or trades) without first discussing this with their client, this is known as unauthorized trading. If you’ve been a victim of unauthorized trading and suffered financial losses, there is hope – you may be able to recover your money.
But you must call us at (800) 732-2889 promptly to avoid ratification and waiver defenses the financial advisors lawyers will raise to avoid paying you back!
What is unauthorized trading?
Unauthorized trading is any purchase or sale of securities made on behalf of a client without prior permission, knowledge or consent.
FINRA Rule 2510(b) prohibits brokers from buying or selling securities in non-discretionary brokerage accounts without talking to customers and getting their approval. This may also be considered a violation of FINRA’s standards for commercial honor, fair trade practices, and prohibitions against manipulative or fraudulent behavior (FINRA Rule 2010 and FINRA Rule 2020).
Unauthorized trading doesn’t apply to discretionary accounts. A discretionary account is an account in which the broker has been granted authority (prior written authority) to make decisions regarding investments and the brokerage firm has approved the account for discretionary trading.
How to Spot Unauthorized Trading
To prevent unauthorized trading, it’s important to stay on top of your investment account. Here are some tips to help you spot it:
- Check your statements: Regularly read your account statements and trade confirmations from your broker to keep track of all transactions.
- Look for strange activity: If you see any trades you didn’t authorize or don’t recognize, take action right away.
- Report it immediately: Reach out to the branch manager and the compliance department of your brokerage firm to report the issue. Follow up with a phone call to confirm they received your complaint.
- Speak with an attorney: A securities lawyer experienced in handling unauthorized trading disputes can help you navigate the process and determine if you may be eligible to recover your losses.
- File a complaint with FINRA: FINRA is the regulatory body that oversees all securities firms in the US. They have a dispute resolution process to help resolve investor complaints.
Remember, the quicker you report unauthorized trading, the stronger your case will be. So don’t hesitate to take action if you suspect something’s amiss.
Have You Suffered Investment Losses Due to Unauthorized Trading?
If you think your broker made unauthorized trades, it’s important to act. A securities lawyer can help you understand the situation and figure out the next steps. Contact us today at (800) 732-2889 or fill out one of our short contact forms.
Can You Sue Your Broker for Unauthorized Trading?
Yes, you can sue your broker for unauthorized trading. Investment loss claims are most often addressed through arbitration, which is governed and regulated by FINRA.
The FINRA arbitration process allows investors to resolve disputes with their brokerage firms without having to go to court. The arbitration process tends to be faster and less expensive than a traditional lawsuit.
If you’ve suffered financial losses due to unauthorized trading, our experienced securities attorneys can help you file a claim against the broker-dealer. We are here to fight for your rights as an investor. Contact us today for more information.
Related Read: Can You Sue a Financial Advisor or Stockbroker Over Losses?
Do You Need an Unauthorized Trading Lawyer?
It is crucial to have an attorney who understands the complexities of securities law, as well as the rules that brokers must abide by when dealing with clients’ accounts.
Making the wrong choices now could result in losing your ability to recover any losses.
A good unauthorized trading attorney knows how to avoid the ratification and waiver defenses!
At the Law Offices of Robert Wayne Pearce, P.A., our attorneys understand how difficult it is for investors when brokers breach their fiduciary duty and make unauthorized trades. We are here to help you get the compensation that you deserve for your losses.
We’ve been helping investors recover lost money for over 40 years. Our track record speaks for itself. We’ve helped recover over $160 million for our clients.
Contact the Law Offices of Robert Wayne Pearce, P.A. today to learn how we can help you with your unauthorized trading dispute. We provide free consultations, so don’t wait – schedule yours now and get the legal help you need.