How Securities Lawyers Safeguard Investors’ Rights
Securities lawyers help investors recover compensation for investment losses. They thoroughly understand regulations set by the Securities and Exchange Commission (SEC), Blue Sky laws, and the Financial Industry Regulatory Authority (FINRA).
Investors who have lost money due to broker fraud must file a claim through FINRA arbitration. They need an experienced securities lawyer to guide them to maximize their recovery.
Representation in Arbitration
What is a securities lawyer? Securities lawyers are uniquely qualified to represent investors in disputes with financial firms and investment professionals. They understand the ins and outs of FINRA arbitration the laws that govern brokers and investment advisors, and they keep abreast of new developments in the industry.
Investors involved in disputes with their brokerage firm often choose to resolve the dispute through FINRA arbitration instead of a lawsuit in court. This is because many brokerage firms require their customers to sign agreements that waive their right to a lawsuit in case of a dispute.
Securities attorneys can guide their clients through the arbitration process, from preparing and filing the claim to representing them at the final hearing. They can also help their clients gather evidence, present their arguments before a panel of arbitrators, and negotiate potential settlements.
Investors should always seek representation from a securities attorney with deep knowledge of the investments sold, the laws that govern those investments, and the complex FINRA arbitration procedural rules and guidelines. When evaluating attorneys, be sure to find out how long they have been practicing and how many FINRA arbitrations they have handled. It would help if you also inquired about the firm’s track record and whether their attorneys are board-certified in securities law. Attorneys specializing in securities arbitration frequently work on a contingent fee basis, which means that they advance the cost of investigating and pursuing your claim with the expectation that they will recover damages on your behalf.
Representation in Court
Securities lawyers are often hired to handle disputes with brokers, stockbrokers, and financial professionals over alleged investment fraud or misdeeds. They help their clients build strong cases for compensation and pursue legal action when appropriate. They also assist in navigating arbitration proceedings administered by FINRA (Financial Industry Regulatory Authority) and state administrative courts.
Securities law is a highly specialized area of the legal field. Its rules and regulations are vital to investors seeking compensation for losses and financial professionals aiming to maintain compliance. Understanding these laws and how to abide by them helps safeguard consumers from fraudulent practices and ensures that markets operate openly and fairly.
Even the most well-informed and wealthy investors can fall prey to investment scams. Securities law protects investors by requiring companies that sell shares of stock to make information about their businesses available to the public so they can assess a company for themselves. It also outlines rules and regulations to prevent securities fraud.
When retaining a securities lawyer to represent you, choosing one with the experience and reputation is important to win your case. A qualified attorney specializing in this complex area of the law has extensive knowledge about various topics and can tailor their approach to your circumstances. Typically, they will offer a free initial consultation and work on a contingency fee basis, meaning you only pay for their services if they successfully recover money on your behalf.
Representation in FINRA Arbitration
Many investors who have lost money due to a broker’s account mishandling will be required by their brokerage firm or financial advisor to file an arbitration claim with the Financial Industry Regulatory Authority (FINRA). FINRA is not a government agency but an independent organization regulating brokerage firms and brokers. This includes drafting regulations, enforcing compliance with those regulations, and providing a forum for investors to file claims against brokers when they have been the victims of misconduct.
Securities lawyers representing clients in FINRA arbitration can take the burden off of the investor by handling the entire process, including filing the claim with FINRA and representing the client through the lengthy arbitration hearing. Depending on their arrangement with the client, a securities lawyer may be able to handle the arbitration on a contingency basis.
When choosing a FINRA attorney to represent you in an arbitration case, look for experience and track record. Whether you’re filing for a FINRA arbitration against your brokerage firm, financial advisor, or stock broker, ensure the lawyer has the experience and knowledge to protect your rights and secure your monetary recovery effectively. In addition, ask the lawyer about his or her disciplinary record and reputation in the community. Awards, professional recognition, and positive media attention are good indicators of a qualified lawyer, but the most important factor is the results obtained from past clients.
Representation in FINRA Court
A securities lawyer can help you file a claim in FINRA arbitration against a brokerage firm or stockbroker who committed fraud. This process involves going before a panel of arbitrators deciding your case. Many investors must sign arbitration agreements with their broker-dealers as a condition of doing business. A seasoned securities attorney can review your arbitration agreement to ensure that your rights are protected.
When you file a claim, FINRA will assign your case to one or more arbitrators, depending on the value of your disputed account. The arbitrators will then select a location for the hearing, which can take three days to two weeks. You and the other party will exchange documents related to your dispute during this time. A skilled FINRA attorney can use discovery to uncover evidence of fraudulent conduct, such as excessive trading (“account churning”) and unsuitable investments.
FINRA’s arbitration panel is typically composed of three arbitrators. In a hearing, you, through your attorney, will present your case to the arbitrators. The panel will also question witnesses. Unlike a judge and jury in a trial, FINRA arbitrators rule on the law and determine issues of fact. Your FINRA attorney will craft a persuasive argument that plays to the audience to give you the best chance of winning your case.
