What if the firm says it didn’t know?
Firms are obligated to supervise their brokers. If they failed to train, monitor, or intervene, they are responsible, regardless of whether they claim ignorance.
How do I know if my broker acted negligently?
You may have a claim if your broker failed to disclose fees, misrepresented a product’s risks or benefits, recommended an unsuitable investment, recommended a product without understanding it, or submitted inaccurate account paperwork. We can review your records and evaluate your options.
What if the broker didn’t sell me a security but still gave bad advice?
FINRA Rule 2010 applies broadly to all business-related conduct. Giving false information or omitting key details in the course of business, even outside a securities transaction, can support a claim if you suffered damages.
Can I bring a claim if the broker made an honest mistake?
Yes. Intent is not required. If the broker failed to exercise reasonable care and that failure caused you harm, the conduct is actionable.
How is negligence different from fraud?
Fraud requires intent. Negligence does not. A broker who misleads a client through carelessness, not malice, can still be held liable.
What is a FINRA Rule 3280 violation?
A broker violates Rule 3280 when they participate in a private securities transaction without first giving written notice to their firm and receiving approval. While Rule 3280 addresses a broker’s duties to their firm, the misconduct may also support an investor claim under FINRA Rule 2010 if the conduct involved deception, omissions, or other unethical behavior.
How is selling away different from fraud?
They’re not mutually exclusive. Selling away can be negligent, reckless, or outright fraudulent, but it always involves acting outside firm approval.
