Each state has its own securities laws. The following are selected sections of the Georgia securities laws that are generally applicable in FINRA arbitrations.
590-4-2-.14 Dishonest or Unethical Business Practices.
(1) Every person registered or required to be registered as a dealer, limited dealer,
salesperson and limited salesperson shall observe high standards of commercial honor
and just and equitable principles of trade in the conduct of business.
(a) The Commissioner may, at his or her discretion, take such action as authorized by
Code Section 10-5-4 regarding any dealer, limited dealer, salesperson or limited
salesperson for any of the following grounds:
2. inducing trading in a customer’s account that is excessive in size or frequency in
view of the financial resources and character of the account (i.e., churning);
3. recommending to a customer or inducing the purchase, sale or exchange of any
security without reasonable grounds to believe that such transaction or recommendation is suitable for the customer based upon a reasonable inquiry concerning the customer’s investment objectives, financial situation and needs, tax status, other security holdings, and any other relevant information known by the dealer, limited dealer, salesperson, or limited salesperson;
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: 590-4-2, Atlanta, Boca Raton, broker dealer, broker fraud, Chicago, excessive trading, FINRA, Florida, Georgia Securities law, Illinois, investment losses, investor protection, NASD, SEC, Securities Attorney, securities compliance, securities regulation, suitability, unethical practices Last modified: December 9, 2022