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Philadelphia FINRA Lawyers

Investment Fraud and Financial Advisor Misconduct

Under Financial Industry Regulatory Authority (FINRA) Rule 12200, customers wishing to bring any claims against a financial advisor or member firm are required to arbitrate their claims, rather than litigate the claims in court. Pursuant to FINRA rules, customers have six years of the occurrence or event giving rise to the action in which to file a claim. It is important for customers to find competent counsel for their FINRA claims because FINRA arbitration orders are final, and can only be appealed in limited circumstances.

Investment fraud and financial advisor misconduct can take many forms, including:

  • Securities fraud
  • Failure to disclose risks associated with particular investments
  • Churning (making frequent trades for the sole purpose of generating commissions)
  • Lack of suitability
  • Unauthorized trading

Financial Advisor Employment Disputes

Typically, financial advisors with employment disputes are required to arbitrate their claims before the FINRA Rule 12300. Types of employment disputes include wrongful discharge, unfair competition, defamation, U5 disputes, and disputes relating to promissory notes.

Promissory Note Disputes

When financial advisors are discharged, or leave a firm on their own, and have an outstanding promissory note, the remainder of the note usually becomes due immediately. However, deductions on the amount owed can be reduced or even eliminated in instances where the financial advisor was inappropriately discharged.

Form U-5 Disputes

The U-5 Form, also known as the Uniform Termination Notice for Securities Industry Regulation, is a document filed by a brokerage firm after a financial advisor is terminated. The U-5 is filed with securities regulators, and must report the reason for the financial advisor’s termination or resignation.

Firms may attempt to retaliate against a financial advisor by including defamatory material in the advisor’s U-5. Defamatory material in a financial advisor’s U-5 can prevent him or her from finding new employment.

Sidkoff, Pincus & Green’s experience and approach to FINRA Claims

If you have been a victim of investment fraud or financial advisor misconduct, or you are a financial advisor with an employment dispute, the attorneys at Sidkoff, Pincus & Green are here to help.

At the Law Offices of Sidkoff, Pincus & Green, our experienced Pennsylvania and New Jersey attorneys handle many types of legal matters, including FINRA arbitrations. If you are interested in having a consultation with one of our attorneys, please call us at 215-574-0600 or contact us online.