Whether or not you knew it at the time you established your brokerage account, virtually every new account agreement with a broker-dealer includes a binding arbitration agreement. As such, if you believe you have a claim against your broker-dealer, whether that claim be fraud, negligence, selling away, etc., you likely will have to arbitrate that claim through FINRA (formerly the NASD). To find out some basic information about the FINRA arbitration process, visit http://www.finra.org/ArbitrationMediation/Rules/CodeofArbitrationProcedure/index.htm
Another helpful investor tool provided by FINRA is a way to look at background information on your financial advisor. All broker-dealers are required to disclose certain reportable events, including customer complaints, about every financial advisor. Interestingly, though, the industry does not make a large effort to disclose this information to its customers because it knows that investors would likely not invest with a financial advisor with a poor track record. If you want to find out more information about your financial advisor, visit http://www.finra.org/Investors/ToolsCalculators/BrokerCheck/index.htm
If you think you have been the victim of securities fraud, or if you have questions about the way your brokerage account has been handled, The White Law Group can help. To speak to a securities attorney, please call our Chicago Office at 312-238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investors protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
To learn more about The White Law Group, visit https://whitesecuritieslaw.com.Last modified: December 22, 2022