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Selling Away Securities

The securities industry is highly regulated. Brokers must get approved from supervision of all their activities, even those that might be considered “outside business activities.” Brokers and their brokerage firms are required to follow the federal and state securities laws, regulations issued by the SEC/FINRA and the rules of the brokerage firm itself. Although the broker may pretend that he is acting in your best interest, he may be in violation of industry rules.

Often, the customer does not even know what the broker is recommending is forbidden by industry rules.

Since the brokerage firm does not know about this investment, it cannot supervise the broker’s activities. This is why it is critical for the brokerage firm to monitor its sales force’s outside business activities, to ensure its customers are protected. If they have not, the customers may be entitled to recover their entire losses on such investments.

Be Cautious of Brokers That Recommend Investments From Outside Their Brokerage Firm

A broker violates these rules when he or she recommends to a customer an alternative investment that is offered by a person or entity outside the brokerage firm. The broker may not tell the customer that the investment is being made outside of the brokerage firm. The broker may claim that the recommended “investment” is in the customer’s best interest, but the brokerage firm may not have reviewed or approved the “investment.” The brokerage firm may not have had the opportunity to complete any due diligence on the investment, and the “investment” might not have been recommended by the brokerage firm.

Call for a Free Consultation!

From its offices in Connecticut and Florida, the Law Offices of Howard M. Rosenfield has been representing investors nationwide in securities arbitrations and mediations for over 30 years. Please call now, toll free, for more information if you believe that you suffered an investment loss: (860) 677-4334.

Client Reviews
Howard Rosenfield is truly a life saver. After months of working with my financial advisor, I found out he was making risky investments without my knowledge. When I discovered how much money I lost, I thought there was nothing I could do. Howard explained all the difficult terms and what exactly my financial advisor did wrong. If it wasn't for Howard, I would never have recovered my losses and would be under extreme financial distress to this day. J.
Howard’s experience and advice throughout this ordeal was invaluable and reassuring. The law in general is complicated, difficult to understand and very personal. Financial misappropriation is even more personal but Howard’s years of experience and calm demeanor helped keep me calm, focused and moving forward. For anyone in need of a knowledgeable and experienced Investment Recovery Attorney I strongly recommend Howard. Laura
I was filled with anxiety and stress when I selected Attorney Howard Rosenfield to represent me. Instantaneously, I felt comfortable and at ease. Attorney Rosenfield listens attentively to the facts and asks questions and competently reiterates and verifies the accuracy and completeness of my statements. Perseverance, trustworthy and superb legal and communication skills mark Attorney Rosenfield to be one of the best in his field of law. Helen