Failure to Supervise

Brokerage firms and investment advisory firms have obligations pursuant to their own policy and procedures, as well as the rules of the self-regulatory organizations (such as, FINRA and NYSE), to supervise the activities of their financial advisers and their firm.

This duty includes, among other obligations, the review of each transaction submitted by the financial adviser to place a trade in a customer’s account, the review of transactions in customer’s account to determine whether the transactions are in accordance with the client’s investment objectives, the review of incoming and outgoing correspondence, and the review of customer accounts to determine if trading in the customer’s account is excessive. If the firm fails to investigate such wrongdoing and/or allows it to take place, the firm may be held liable for its failure to supervise its employees.

If you suspect that your financial adviser was not adequately supervised, or engaged in another sales practice abuse, please contact Wittenberg Law to discuss your legal rights and options.