Panel Appointed to Fix Flawed Broker Arbitration System

In a recent New York Times article, certain investors who failed to prevail on their claims against their broker complained about the arbitration panel’s actions at the hearing. Specifically, arbitrators struggling to stay awake or being heard laughing about the facts of the case. In response to numerous investor complaints, the Financial Industry Regulatory Authority […]

Bank Fined for Supervisory Failures Related to Facebook and Yelp IPOs

In May 2014, the Financial Industry Regulatory Authority (FINRA) fined the bank Morgan Stanley Smith Barney LLC $ 5 million for supervisory failures related to the way its brokers solicited investments in certain initial public offerings (IPOs).  Between February 2012 and May 2013, Morgan Stanley Smith Barney LLC sold shares of 83 IPOs to retail customers […]

Broker-Dealer Faces Big Fine for Failure to Supervise

Last week, the Financial Industry Regulatory Authority (FINRA) fined LPL Financial LLC, one of the country’s largest networks of independent broker-dealers, $950,000 for its failure to supervise sales of alternative investment products, including non-traded real estate investment trusts (REITs), oil and gas partnerships, business development companies (BDCs), hedge funds, managed futures and other illiquid pass-through […]

Can Your Employer Really Stop You From Taking a New Job?

When an employee leaves one job for another, they often are surprised to find out that their previous employer might be able to prevent them from working in the same industry.  Many employers write provisions into their employment contracts that seek to prevent employees from working for competitors.  However, these provisions do not always comply […]

Claims Against Stockbrokers

Disputes frequently arise between investors and their securities brokers.  It is best to be proactive if you believe your broker has mismanaged your investments.  As an investor, you may report any issues or disputes to your broker’s manager or the brokerage firm’s compliance department.  You should keep notes of all telephone calls with your broker […]