Broker liability is based on a duty…but who defines the word “duty”?

Posted On: February 8, 2011 by Law Offices of Ralph Behr

When a stock broker is accused of fraud, misdeeds, abuse, or any act which can justify a FINRA arbitration claim: who defines what is a breach of the duty a financial advisor owes a client? The question is always leading and the answer is always just one case away. The SEC recently reported that over 11,000 registered investment advisors don’t have the resources or back-up support to adequately meet the standard of care. The report and a recently released FINRA report clearly intends to raise the bar and in effect create more liability for stock brokers to their clients. Stock broker fraud involves the misrepresentation of the risk or the nature of the investment vehicle. But when is the stock brokers’ fee part of the equation? When is it important for an investment decision to be made knowing the stock broker’s fee? Is it relevant? Financial advisors are paid professionals, and provide a service that some investors suggest is without cost, but is it? Increasingly FINRA arbitrations in South Florida (Boca Raton, Fort Lauderdale) involve south Florida securities fraud lawyers litigating in FINRA arbitrations whether a financial advisor has breached his duty. If you feel you have been mistreated by your stock broker take your questions to a South Florida securities law or “stockbroker fraud” lawyer here in
Fort Lauderdale or Miami. Only an informed opinion can help you understand if your claim has merit or not.