What are your Rights as an Investor?
Investors are entitled to certain rights that safeguard their interests and also promote fairness in the realm of the securities world. By law, a broker must recommend suitable investments. To be considered suitable, an investment should align with the client’s investment objectives. There are critical aspects to making sure that investors are being protected, while also being given the proper tools to measure the success of their investments. Listed below are some of the rights that investors have when entering into an investment.
The Right to Information: You have the right to get accurate and timely information about any investment you’re considering. This includes things like disclosure documents and financial statements. It’s all about making sure you have the information you need to make smart investment choices.
The Right to Fair Treatment: Financial professionals, like brokers and advisors, have to treat you fairly and honestly. They should always act in your best interests and give you recommendations that suit your needs. No shady dealings allowed!
Access to Account Information: You’ve got the right to see what’s going on with your investment accounts. That means you can check out your transaction history, fees, and account statements. It’s all about transparency so you can keep an eye on your investments.
Privacy: Your personal and financial information has to be kept private by your investment firm or advisor. They must have safeguards in place to protect your privacy. Your financial information is sensitive, and you should have control over how it’s shared.
Diversification: If you’re working with a professional, they should suggest a diversified portfolio that matches your goals and risk tolerance. Diversification helps spread out risk, and may help with return on your investments.
Redress for Complaints: If you ever feel like you’ve been treated unfairly, you can file a complaint. There are regulatory authorities like the SEC and the Financial Industry Regulatory Authority (FINRA) that help you if you have been defrauded.
Proxy Voting: If you own shares in a company, you get to vote on important matters related to that company.
Regulatory Oversight: Regulatory bodies like the SEC and FINRA keep an eye on financial markets and professsionals to make sure you are protected. They enforce rules to protect you and keep the market fair.
Protection Against Fraud: Again, securities regulators help to protect you from fraudulent activities.
FINRA Arbitration
If you are concerned about a violation of your rights as an investor, and you have suffered investment losses, you may have recourse. FINRA arbitration is similar to a dispute resolution process that is methodically designed for investors. FINRA is the Financial Industry Regulatory Authority that plays a critical role in ensuring the integrity of America’s financial system and all at no cost to taxpayers. FINRA works under the supervision of the Securities and Exchange Commission (SEC) and they write and enforce rules governing the ethical activities of all registered broker-dealer firms and registered brokers in the U.S. FINRA also examines firms for compliance with those rules, foster market transparency, and educate investors.
FINRA arbitration is an alternative to going to court, and it allows investors to resolve their grievances with their brokers or financial firms. In FINRA arbitration, a neutral third party, called an arbitrator, reviews the case and makes a conclusive decision. It’s a more streamlined and cost-effective way to seek relostion and obsidian compensation for any harm or losses suffered. FINRA arbitration can be a helpful avenue to pursue justice if you feel you’ve been misrepresented or scammed.
Securities Fraud Attorneys
The securities fraud attorneys at The White Law Group specialize can help investors who have been victimized by scams or fraudulent practices. These attorneys also work towards justice for their clients by investigating cases, gathering financial evidence, and representing clients in legal proceedings to recover losses stemming from investment fraud. If any of your rights as an investor have been violated, you should consider contacting one of our securities fraud attorney for a consultation regarding a possible case. If you find yourself in need of representation and protection against investment fraud, we may be able to assist you.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We represent investors in all 50 states. Our attorneys have recovered millions of dollars from many brokerage firms in the past.
