Each state has its own securities laws. The following are selected sections of the Vermont securities laws that are generally applicable in FINRA arbitrations.
21 030 003. Unethical or Dishonest Practices of Broker/Dealers and Sales Representatives – Regulation 91-1
SECTION 3: GENERAL RULES
Unethical or dishonest practices in the securities business as used in 9 V.S.A. Section 4221a(a) (8) include, but are not limited to, the following:
3.04 Switching or churning of securities in a customer’s account or 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;
3.05 Recommending to a customer 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 reasonable inquiry concerning the customer’s other securities holdings, investment objectives, financial situation and needs and any other relevant information known by the broker-dealer or sales representative;
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: 21 030 003, Boca Raton, broker dealer, broker fraud, Chicago, excessive trading, FINRA, Florida, Illinois, investment losses, investor protection, NASD, SEC, Section 4221a, Securities Attorney, securities compliance, securities regulation, stockbroker, suitability, Vermont securities laws Last modified: July 17, 2015