subject: When Do You Need A Securities Lawyer? [print this page] There are quite a few reasons why you may need a securities lawyer. If they fail to execute transactions like you asked them to, it violates an organization called FINRA (Financial Industry Regulatory Association) rules, as well as local state and federal laws. You may also be able to make a claim if your broker fails to execute a stop loss order or a requested limit order. If the broker waits a substantial amount of time or fails, then you could have legal rights for a case against the broker and his or her firm.
Someone selling securities must be registered with both the SEC and the Financial Industry Regulatory, or be exempt from registration. This applies to anyone offering advice about the sale or purchase of securities. Advisors must also be registered or find some sort of exemption. Any investor purchasing a security from an unregistered person may be entitled to rescind the transaction or even to hold the unregistered seller liable for damages. State Blue Sky laws as well as federal make brokerage firms, brokers and the securities themselves to be either exempt from registration, or registered. If not, you do have the right to proceed with a suit against the brokerage firm or broker, and using a good securities lawyer will mean that youll have a professional guide.
If your financial advisor or broker has stolen money from your account then this is termed misappropriation of assets. Have you been asked to make checks out to the broker instead of his or her firm? Is there any money missing from your account at the brokerage or has the money you paid the broker not been deposited to your account? You could be a victim of theft. If there has been misappropriation of assets then you could have a claim against the broker or their firm.
If youve never heard the term auction rate securities then its a debt instrument where the interest rate is reset on a regular basis though a Dutch auction. Auctions for these securities started to fail at the beginning of 2008, and the investments were mostly worthless and illiquid. If youve been left with these types of securities then you could have a valid claim against your brokerage firm and broker. Using a highly experienced lawyer who knows the ins and outs of this field, will benefit you greatly if you need to pursue a case against them.
