Quick Reminder of Broker/Dealer Prohibited Conduct – South Florida Elder Financial Abuse and Exploitation Litigation and Arbitration Attorney

South Florida Elder Abuse and Investment Fraud and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney:

As an investor or as someone contemplating investing, you should be aware that certain types of conduct in the securities industry are prohibited by statute, rules or regulations. The following list highlights some of the most common prohibited activities:

1. Recommending to a customer the purchase or sale of a security that is unsuitable given the customer’s age, financial situation, investment objective, and investment experience. Investment in a particular type of security may be unsuitable or the amount or frequency of transactions may be excessive and therefore unsuitable for a given customer.

2. Purchasing or selling securities in a customer’s account without first contacting the customer and the customer did not specifically authorize the sale or purchase, unless the broker has received from the customer written discretionary authority to effect transactions in the account or the broker was given discretion as to price and time.

3. Switching a customer from one mutual fund or annuity to another when there is no legitimate investment purpose underlying the switch.

4. Misrepresenting or failing to disclose material facts concerning an investment. Examples of information that may be considered material and that should be accurately presented to customers include: the risks of investing in a particular security; the charges or fees involved; company financial information; and technical or analytical information, such as bond ratings. Within this framework, it is important to understand whether the account executive is knowledgeable in these areas on just relying upon what the firm’s marketing material is telling him or her.

5. Removing funds or securities from a customer’s account without the customer’s prior authorization.

6. Charging a customer excessive markups, markdowns, or commissions on the purchase or sale of securities.

7. Guaranteeing customers that they will not lose money on a particular securities transaction, making specific price predictions, or agreeing to share in any losses in the customer’s account.

8. Private securities transactions between a broker and a customer that may violate FINRA rules, particularly where such transactions are done without the knowledge and permission of the sales representative’s firm.

9. Trading for a firm’s account in preference to a customer by trading ahead of a customer limit order, absent a valid exception.

10. Failure by a market maker to display a customer limit order in its published quotes, absent a valid exception.

11. Failing to use reasonable diligence to see that a customer’s order is executed at the best possible price, given prevailing market conditions.

12. Purchasing or selling a security while in possession of material, non-public information regarding an issuer.

13. Using any manipulative, deceptive, or other fraudulent device or contrivance to effect any transaction in, or induce the purchase or sale of, any security.

Contact Us:

With extensive courtroom, arbitration and mediation experience and an in-depth understanding of elder abuse and the securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.

At the Fort Lauderdale Law Office of Russell L. Forkey, we represent clients throughout South and Centeral Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.