Posts belonging to Category Stockbroker Standards of Conduct

Is Your Broker or Financial Adviser “Churning” Your Account?


The SEC defines “churning” as “the excessive buying and selling of securities in your account by your broker, for the purpose of generating commissions and without regard to your investment objectives.” If your broker has been aggressively trading your account (or urging you to trade your account) directing a high volume of trades that make […]

New York Increases Investor Protection


Just before the holidays, in a “little-noticed” decision, New York’s Appellate Division, First Department overturned a long-standing legal doctrine called “Martin Act Preemption,” and expanded investor protection according to a Law360 article entitled “Preemption And The Martin Act.”

Investment Malpractice -A General Overview


With the rise of consumerism, most Americans take for granted the right to sue doctors, lawyers and other professionals for malpractice. But there is one form of professional malpractice that most people, including trial lawyers, are not familiar with. Stockbrokers, investment advisers, money managers and chartered financial analysts, among others, are financial professionals who are […]

Securities Industry Opposes Both Self Reporting and Whistleblower Rules – What are They Trying to Hide?


Brokerage firms are worried about a new FINRA Rule that would require them to report misconduct to FINRA in situations where the misconduct “has widespread or potential widespread impact” (FINRA’s words) and the firm has concluded or reasonably should have concluded on its own that violative conduct has occurred” (FINRA’s words). See Dan Jamieson’s InvestmentNews […]

Some Financial Advisors Don’t Put Their Clients’ Interests First


The Securities and Exchange Commission recently recommended that stockbrokers be required to put the interest of their clients in front of the stockbroker’s bottom line. However, stockbrokers are not the only advisors who put themselves first, according to an article by Anna Maria Andriotis of Advisors from all different spectrums have incentives in selling […]

InvestmentNews – All Brokers and Advisers Should Be “Fiduciaries”


InvestmentNews has published an article expressing its strong support for a rule that requires brokers and investment advisers alike to adhere to the highest fiduciary standard of conduct: “In the name of investor protection, we urge the Securities and Exchange Commission to exercise its rulemaking authority to require brokers to act in their clients’ undivided […]