Each state has its own securities laws. The following are selected sections of the Arizona securities laws that are generally applicable in FINRA arbitrations.
R14-4-130. Dishonest and Unethical Conduct
A. For purposes of A.R.S. §§ 44-1961(A)(13) and 44-1962(10), dishonest or unethical practices in the securities industry shall include but not be limited to the following:
3. Inducing trading in a customer’s account which is excessive in size or frequency in view of the customer’s financial resources, the character of the account, and other relevant factors.
4. Recommending to a customer the purchase, sale or exchange of any security without reasonable grounds to believe that the recommendation is suitable for the customer. Such suitability shall be determined on the basis of information furnished by the customer after such inquiry as may be necessary under the circumstances, concerning the customer’s investment objectives, financial situation and needs, and other information known by the person making the recommendation. Each registered dealer shall require and maintain information regarding its customers necessary to make such determination prior to engaging in any transaction based upon a recommendation by the firm or its registered salesman.
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.
For more information on The White Law Group, please visit our website at https://whitesecuritieslaw.com.Tags: 44-1961(A)(13), 44-1962(10), Arizona Securities Law, Boca Raton, broker dealer, broker fraud, Chicago, excessive trading, FINRA, Florida, Illinois, investment losses, investor protection, NASD, R14-4-130, SEC, Securities Attorney, securities compliance, securities industry, securities regulation, suitability, suitable, unethical practices Last modified: January 5, 2023