Failure to Supervise Claim Under FINRA

All Financial Industry Regulatory Authority (FINRA) member firms and its firm managers are obligated to supervise their investment professionals. FINRA Rule 4010 states the following: “Each member shall establish and maintain a system to supervise the activities of each registered representative, registered principal, and other associated persons that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA Rules”. Member firms also have an obligation to review investor account statements for potential problems including unsuitable investment recommendations, unauthorized trading, churning, breach of fiduciary duty, and failure to execute securities orders.
In most instances where an investment professional has violated any securities laws, regulations, or industry standards, the investment professional’s manager or supervisor may be liable for failing to supervise its investment professional. If your investment professional has made unsuitable investment recommendations, traded your account without prior approval, churned your account, breached their fiduciary duty to you, or failed to execute a securities order, the brokerage firm may be liable for failure to supervise.

Legal Help for Failure to Supervise FINRA Claims

The Investment Losses Law Firm of Gilman Law LLP is a leading securities fraud law firm that is here to help you recover damages in connection with your broker firm or investment professional’s failure to supervise its representatives. For a FREE evaluation of your failure to supervise case, please fill out our online form, or if you need to speak to an attorney right away CALL TOLL FREE (1-888-252-0048) today.