What is Stock Broker Fraud and Misconduct?
Stock broker fraud and misconduct is an umbrella term that refers to any fraud or violation of law or regulations by brokers. Stock brokers and brokerage firms are regulated by FINRA, the SEC (Securities and Exchange Commission), as well as federal & state law. Among other things, stock brokers are required to:
Make suitable recommendations
Make fair and balanced risk disclosures
Manage a client’s investment portfolio
Disclose conflicts of interest
Research financial markets
Monitor clients’ investments
Report information to clients
Types of Stock Broker Misconduct
Fraud, Misrepresentation, or Omissions
Excessive Use of Margin
Failure to Supervise
Violations of The Securities Act of 1933, The Exchange Act of 1934, The Investment Company Act of 1940, The Investment Advisers Act of 1940, Pennsylvania’s Blue Sky Laws, FINRA and SEC Regulations
If you have been harmed by stock broker misconduct, contact us to discuss your legal options.