Sadly, this happens all too often; financial professionals entrusted to invest hard earned money and retirement funds take actions that serve their own interests instead of the investors. This can lead to significant investment losses for an investor and substantial gains for the financial professional. Investors expect their broker or investment advisor to behave in an ethical and responsible manner. When they don't, many investors experience detrimental loss.

Typically, a dispute will involve allegations that the broker or brokerage firm committed one or more of the following types of misconduct: 


  • Unsuitable Investments  

  • Improper Asset Allocation or Lack of Diversification

  • Margin losses 

  • “Churning” or Excessive Trading 

  • Misrepresentations or non-disclosure of investment facts and its risks

  • Unauthorized trading

  • Other stockbroker misconduct ranging from failure to follow your instructions to outright theft of client funds and Ponzi schemes


Many investors don't realize that there is a streamlined way through FINRA to pursue claims against the firms and individuals that may have caused them the financial harm. 


What is FINRA?


FINRA, which is the acronym for Financial Industry Regulatory Authority, is a private non-profit organization authorized by the U.S. Congress to govern the compliance and conduct of the broker-dealer market. One of the many ways FINRA governs this market is by providing an arbitration forum where investors can resolve disputes with their brokers.


What is FINRA Arbitration?


When a customer opens an account at a brokerage firm, he or she completes an application. Typically, within this application is a clause that requires any disputes be conducted through FINRA Arbitration rather than the court system.


FINRA Arbitration is a streamlined process conducted by a set of rules and through a forum provided by FINRA. 



Jason Rosen is a former financial professional with ten years' experience trading and advising individuals and companies on various investment products such as stocks, bond, annuities and mutual funds.


Contact JER Law Firm, P.A. to review your claim.