Cases Handled by Arbitration Lawyers

Typical Cases Handled by Securities Arbitration Lawyers

Whether you are a young, middle-aged, or retired investor, a financial loss percolates into other aspects of your personal and professional life. This could potentially have a tremendous emotional and financial impact. Should you wish to resolve your dispute with your broker or brokerage firm, retaining the services of securities arbitration lawyers is the most prudent decision.

The first step a brokerage firm takes in dealing with any claim has researched the attorney who represents you to determine their background, experience, and track record in FINRA arbitration.

Most disputes between investors and brokers do not go to court. Instead, they need to be resolved via the Financial Industry Regulatory Authority (FINRA) arbitration. These disputes are presented before FINRA's Office of Dispute Resolution.

Investment fraud can affect anyone directly or indirectly. By retaining the services of investment fraud attorneys, it is possible to pursue claims against your broker or brokerage firms for their wrongdoing or negligence.

In this article, we shall discuss a few elements of securities arbitration cases that are typically handled by securities arbitration lawyers. Here they are:

Unauthorized trades: If your broker or brokerage firm did not obtain permission from you as an investor before executing a transaction, it can be termed as 'unauthorized trade'.

Various securities regulations mandate that the broker needs to be provided with actual authorization prior to each and every transaction unless the discretionary authority has been provided for in writing. Unauthorized transactions can also a violation of fiduciary duty to their client.

Risk profile change and Unsuitable Recommendations or Purchases: Such cases pertain to a broker changing your investment plan and strategy, and or recommending an unsuitable strategy for your life circumstance, resulting in significant unexpected losses. For instance, if you are a retired person (or just nearing retirement) and your investment plan has been changed from conservative to aggressive without your input, this translates into a change of risk profile.

Often this also accompanies unauthorized trading above. Such often leads to unsuitable transactions taking place in the account, which losses can then often then be recovered in arbitration.

Mutual fund switching: Sometimes, to avail higher broker commission, brokers might wrongly advice you to exit from one mutual fund and enter another. This might not necessarily be in the best of your interest as an investor, but it is likely in the best interest of you broker or brokerage firm as they earn substantial fees as a result of such mutual fund switching. You could enlist the services of securities arbitration lawyers to deal with such wrongdoings by your broker.

Fraudulent stock research: If you have been defrauded by your stock brokerage firm or broker into believing fraudulent or misguiding research figures, and have made an investment based on such research, it could be termed as fraudulent stock research. Investment fraud lawyers that are familiar with such tricks employed by brokerage firms can help pursue your claim.

Negligent retirement advice: As more and more people in the USA enter the retirement phase, matters relating to negligent retirement advice are coming to the fore.

For instance, it would be unsuitable for a retiree to be given a speculative recommendations by their broker.

This could lead to financial losses that could be recovered by filing a claim in FINRA arbitration. Such matters can be handled by securities arbitration lawyers.