What is FINRA?

On Behalf of | Sep 12, 2022 | Business Litigation |

If you lost money because of a broker, you have options. They have a duty to protect you and give you sound financial advice. If they sold you fraudulent securities, embellished their investment offerings or made money at your expense, they have likely violated Financial Industry Regulatory Authority rules.

What does FINRA do?

The Financial Industry Regulatory Authority creates and administers rules for brokers and brokerage firms. The main goal of FINRA is to protect investor interests by ensuring that brokers do not breach their fiduciary duties. In addition, they protect investors from many other brokerage missteps and fraud. The organization was started in 2007. FINRA also administers entrance tests for securities professionals, and they can act to ensure their rules are followed through disciplinary measures.

What are my options if I want to resolve a dispute via FINRA?

As an investor in Detroit, you place trust in your broker or brokerage, and FINRA was created, in part, to address infractions that occur in securities dealings, like fraud, unauthorized trading or failure of a broker to fulfill their fiduciary duties. If you have reason to believe that your broker or their firm is managing your securities impropriety, it is in your best interest to discuss your concerns and options with an attorney to file a claim with FINRA.

If I have a securities claim against a broker, what can FINRA do for me?

FINRA allows you to make complaints against brokers, and you can also arbitrate or mediate a claim. An attorney who has experience with FINRA arbitrations and mediations can be an asset to enter the dispute resolution process with. If you have been wronged in the administration of your securities, you do not have to accept wrongdoing and an attorney can help you discuss your unique circumstances. FINRA was created to protect investors from inappropriate brokerage actions, and securities litigation attorneys are there to assist you in the recovery of damages, if you have a claim.