What duty does a Stockbroker owe to his/her Client?

Posted On: October 18, 2011 by Law Offices of Ralph Behr

All stockbrokers are regulated by FINRA, which licenses and disciplines both stockbrokers and the brokerage firms that they work for. These federal securities laws and rules concern themselves with the suitability of security transactions for each individual customer. Stockbrokers must have a reasonable basis for any recommendation for the purchase or sale of any securities. The rules do not create any presumption that a transaction is appropriate, but each individual transaction must be suitable for the investor and their risk tolerance. The rules concerning transactions with customers, which regulate stockbrokers in South Florida, Fort Lauderdale, Miami, and West Palm Beach, require both transparency and justification for any recommendation or transaction. Your stockbroker, if he or she is in a nation franchise, or recognized traditional Wall Street brokerage house, is supervised both by the stock broker office manager and the compliance department. Regulations concerning transactions advised or performed at the request of investors are always subject to review. If you feel that you have been placed in an inappropriate high risk investment, contact a South Florida securities lawyer. FINRA has offices in South Florida, Boca Raton, where they undertake and conduct arbitrations. If you feel you have been victimized by stockbroker. If you believe that you are in a high risk and inappropriate investment due to stockbroker advice. If you feel you've been victimized by stockbroker fraud call a South Florida securities law firm and get a free consultation about your remedies available through arbitration.