retail investors

3 "Golden Rules" for Better Financial Self-Defense

3 "Golden Rules" for Better Financial Self-Defense

In the many dozens of securities litigation cases we have worked on for investors, we have noticed that, when it comes to protecting yourself against broker misconduct and financial fraud, there several "golden rules" which, if regularly observed, would prevent the vast majority of abuses in the securities industry. 

Broker Best Interest Regulations Fall Short

Broker Best Interest Regulations Fall Short

In order to reform the system, investor advocacy groups have suggested the SEC enhance the standard to which brokerages and brokers are held with regard to investor best interests. Currently the standard is based on the necessity of matching investor and investment through a concept known as "suitability." Investor advocates like PIABA, however, want to raise the bar to the "best interest” standard.

Unpaid Awards Plague FINRA Arbitration Forum

Unpaid Awards Plague FINRA Arbitration Forum

Recently, FINRA created a task force to study the problem and discovered that, in the five years from 2012 through 2016, a total of 268 awards (27% of the cases where investors were successful) or $199 million in awards (29% of total damages awarded to investors) have gone unpaid, the report states.

FINRA Fines Citigroup $11.5 Million for Inaccurate Info to Customers, Brokers

FINRA Fines Citigroup $11.5 Million for Inaccurate Info to Customers, Brokers

From February 2011 to December 2015, Citigroup displayed to investors, brokers, and supervisors inaccurate ratings related to more than 1,800 equities, or more than 38% covered by the firm. These mistakes included the wrong execution recommendations (“buy” instead of “sell”); ratings which were mixed up between securities; or non-ratings for securities which were actually rated.