Each state has its own securities laws. The following are selected sections of the West Virginia securities laws that are generally applicable in FINRA arbitrations.
Pursuant to the authority delegated to the Commissioner by §32-4-402(b)(9) and §32-4-412 of the Code of West Virginia, the following transaction is determined to be exempt from the registration provisions of Chapter 32 of the Code of West Virginia: (4) In all sales to non-accredited investors (as the term is defined in Regulation D under the Securities Act of 1933), the issuer and any person acting on its behalf shall have reasonable grounds to believe and after making reasonable inquiry shall believe that the investment is suitable for the purchaser upon the basis of the facts if any disclosed by the purchaser as to his or her other security holdings and financial situation and needs.
13.05 Prohibited Business Practices. The following are deemed “dishonest or unethical practices in the securities business” by an investment adviser under §32-2-204(g) of the Code of West Virginia, without limiting those terms to the practices specified in this section: (3) 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;
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, Regulation D, SEC, Securities Attorney, securities compliance, securities regulation, stockbroker, suitability, West Virginia securities laws, §32-4-402(b)(9) Last modified: July 17, 2015