Securities Fraud Q&A

Investment advisor or stock broker fraud can take several forms. Acts of fraud can include lying, stealing, or the failure to disclose material information about an investment. Malpractice can also include such things as failure to properly diversify an account (for example having too much... Read More
Some (but not all) investment fraud can cause a “red flag” to be raised that can make an investor suspicious. The investor should be on alert to look for such red flags. The following are a few of the more common things to watch for:... Read More
There are many types of investment fraud: Misrepresentations and Omissions Misrepresentation involves a breach by the broker of his duty of good faith not to misrepresent any “material” fact to the investor in the sale or recommendation of an investment. Material facts include facts that... Read More
The biggest issue to most investors is the loss of money. Can you get your money back after being a victim of investment securities fraud or advisor malpractice? Frankly, it depends upon whether or not your advisor or stock broker has violated the rules and... Read More
Nearly all national brokerage companies and many larger regional stock brokerage firms require their customers to sign FINRA arbitration agreements as a condition upon you doing business with their company. This means that if you, for any reason, need to sue your investment advisor, stock... Read More
FINRA arbitration is only required where the customer has signed an agreement waiving his rights to file a lawsuit in court and instead requiring him to file a FINRA arbitration. While most national and regional brokerage firms do require customers to sign FINRA arbitration agreements... Read More
The Securities Industry and Financial Markets Association (SIFMA) is a leading securities industry trade group representing the shared interests of more than 650 securities firms, banks and asset managers in the U.S. and Hong Kong. Its mission is to promote regulation; facilitate more open, competitive,... Read More
A Registered Investment Advisor (RIA) is an Investment Advisor registered with the Securities and Exchange Commission or a state’s securities agency. The term was popularized by the numerous references to RIAs within the Investment Advisors Act of 1940. An investment advisor is an individual or... Read More
According to the Securities and Exchange Commission, an investment advisor is an individual or firm in the business of giving advice about investments in securities to clients and receiving compensation for doing so. The securities could include stocks, bonds and mutual funds. Some investment advisors... Read More
The Certified Financial Planner (CFP) designation is a professional certification mark for financial planners conferred by the Certified Financial Planner Board of Standards. To receive authorization to use the designation, the candidate must meet education, examination, experience and ethics requirements, and pay an ongoing certification... Read More