Each state has its own securities laws. The following are selected sections of the Rhode Island securities laws that are generally applicable in FINRA arbitrations.
RULE 212(a)-1 UNETHICAL OR DISHONEST PRACTICES
Under authority of Section 705(a)(3), the director hereby defines the term “unethical or dishonest practices”, as that term appears in Section 7-11-212(a)(8) and without limiting the meaning to that set forth below, to mean one or more instances where a person has engaged in the conduct described below:
A. The following are deemed to be unethical or dishonest practices by a broker-dealer:
1. Causing any unreasonable delay in the deliver of securities purchased by any of its customers, or in the payment upon request of free credit balances reflecting completed transactions of any of its customers;
2. Inducing trading in a customer’s account which is excessive in size or frequency in view of the financial resources and character of the account;
3. Recommending to a customer the purchase, sale or exchange of any securities without reasonable grounds to believe that the recommendation is suitable for the customer after reasonable inquiry concerning the customer’s investment objectives, financial situation
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: Boca Raton, broker dealer, broker fraud, Chicago, excessive trading, FINRA, Florida, Illinois, investment losses, investor protection, NASD, Rhode Island securities laws, Rule 212, SEC, Section 705, Securities Attorney, securities compliance, securities regulation, stockbroker, suitability Last modified: July 17, 2015