The Financial Industry Regulatory Authority (FINRA) plays a recurrent role in securities litigation. This entity is designed to help investors protect their assets while also ensuring the highest level of integrity in the finance market. FINRA engages in regulatory oversight of the financial services industry. It is not a government agency but is instead a non-profit independent entity that has Congress’ authority to enact regulations and bring enforcement actions against brokers who break the rules. Los Angeles securities law attorney Steve A. Buchwalter understands the full spectrum of FINRA regulations and can determine whether a broker may have violated these provisions.
FINRA engages in four main functions. First, the entity writes and enforces rules that govern the activities of nearly 4,000 securities firms and close to 640,000 brokers in the United States. Next, FINRA is responsible for reviewing each firm’s activities and determining whether the firm complied with its regulations. FINRA is also tasked with promoting and instilling transparency in the financial services market. Finally, FINRA provides educational services to brokers and firms to ensure that they are familiar with the rules and that they are complying with them completely. During 2015, FINRA brought over 1,500 disciplinary actions against brokers and securities firms that allegedly breached its regulations. This resulted in the levying of over $95 million in fines and the ordering of over $96 million in restitution to investors who were harmed by these FINRA violations.
If you have been burned by your broker, you likely can bring a negligence action against him or her, or your broker’s firm, to pursue compensation. Brokers owe an elevated fiduciary duty to their clients because they have more experience and sophistication when it comes to reading the financial market, making recommendations, and protecting their clients’ assets and financial goals. If a broker fails to act according to this high level of care, the investor is entitled to recover the difference between his or her account following the broker’s negligence and the estimated value of his or her account had the broker acted with the appropriate level of care. California law and FINRA regulations inform the standard of care that applies in a certain situation. Thus, if a broker has violated California law or a FINRA regulation, and the investor incurs damages as a result of the violation, the broker has likely breached his or her fiduciary duty of care.
As an investor, you place the utmost trust and confidence in your broker to carefully protect your financial goals and assets. If you lose money as a result of a broker’s carelessness or intentional wrongdoing, Los Angeles securities fraud lawyer Steve A. Buchwalter is ready to help you assert your right to justice. Understanding the exact way in which a broker failed to meet his or her duty of care may be difficult, especially when it comes to intricate financial transactions. We can assist you through each step of the process, from pre-trial investigation and any settlement negotiations through trial and any appeals if needed. Serving investors throughout Southern California, including in Beverly Hills, Irvine, Newport Beach, Santa Barbara, and other cities in Los Angeles, Orange, and Ventura Counties, we offer a free consultation to help you learn about your legal rights. Call us at 818-501-8987 or contact us online to set up an appointment with a broker fraud attorney.