Each state has its own securities laws. The following are selected sections of the Iowa securities laws that are generally applicable in FINRA arbitrations.
191—50.16(502) Dishonest or unethical practices in the securities business.
50.16(1)?Dishonest or unethical business practices by any person in the securities business, other than an agent, investment adviser, investment adviser representative, or federal covered investment adviser, as prohibited pursuant to Iowa Code section 502.412(4)“m” include, but are not limited to, the following:
b. Inducing in a customer’s account trading which is excessive in size or frequency relative to the financial resources and character of the account;
c. Recommending to a customer the purchase, sale or exchange of any securities without reasonable grounds to believe that such transaction or recommendation is suitable for the customer based upon reasonable inquiry concerning the customer’s investment objectives, financial situation and needs, and any other relevant information known by the broker–dealer;
If you have questions about a state securities law, The White Law Group may be able to help. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida. With over 30 years of securities law experience, including experience working at FINRA (f/k/a the NASD) and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions.
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Tags: 191-50.16, 502.412, Boca Raton, broker dealer, broker fraud, Chicago, excessive trading, FINRA, Florida, Illinois, investment losses, investor protection, Iowa Securities Laws, NASD, SEC, Securities Attorney, securities compliance, securities regulation, suitability, unethical practices Last modified: July 17, 2015
