Each state has its own securities laws. The following are selected sections of the Minnesota securities laws that are generally applicable in FINRA arbitrations.
2876.5023 PROHIBITED CONDUCT IN PROVIDING INVESTMENT ADVICE.
Subpart 1. Fiduciary duty. A person who is an investment adviser or a federal
covered investment adviser is a fiduciary and has a duty to act primarily for the benefit of its clients. This part applies to federal covered investment advisers to the extent permitted by the National Securities Markets Improvement Act of 1996. While the extent and nature of this duty varies according to the nature of the relationship between an investment adviser or a federal covered investment adviser and its clients and the circumstances of each case, an investment adviser or a federal covered investment adviser shall not engage in prohibited fraudulent, deceptive, or manipulative conduct, including but not limited to the following:
A. recommending to a client to whom investment advisory services are provided
the purchase, sale, or exchange of any security without reasonable grounds to believe that the recommendation is suitable for the client on the basis of information furnished by the client after reasonable inquiry concerning the client’s investment objectives, financial situation and needs, and any other information known by the investment adviser or federal covered investment adviser;
C. inducing trading in a client’s account that is excessive in size or frequency in view of the financial resources, investment objectives, and character of the account;
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: 2876.5023, Boca Raton, broker dealer, broker fraud, Chicago, excessive trading, fiduciary duty, FINRA, Florida, Illinois, investment losses, investor protection, Minnesota Securities Laws, NASD, National Securities Markets Improvement Act, SEC, Securities Attorney, securities compliance, securities regulation, stockbroker, suitability Last modified: July 17, 2015