Each state has its own securities laws. The following are selected sections of the Delaware securities laws that are generally applicable in FINRA arbitrations.
(b) Broker-Dealers. For the purposes of 6 Del. C. §7316(a)(7), dishonest or unethical practices by a broker-dealer shall include, but not be limited to, the following conduct:
(2) Inducing trading in a customer’s account that is excessive in size or frequency in view of the customer’s investment objective, level of sophistication in investments, and financial situation and needs;
(3) Recommending a transaction without reasonable grounds to believe that such transaction is suitable for the customer in light of the customer’s investment objective, level of sophistication in investments, financial situation and needs, and any other information material to the investment;
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 Seattle, Washington. 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: 7316(a)(7), Boca Raton, broker fraud, broker-dealers, Chicago, Delaware securities laws, excessive trading, Florida, Illinois, investor protection, securities regulation, suitability, unethical practices Last modified: January 11, 2023
