Stockbroker fraud refers to misconduct by investment professionals and includes the sale of unsuitable or risky investments, the failure to disclose risk, self-dealing or breach of fiduciary duty, the sale of defective financial products, lack of training, failure to conduct due diligence, and the failure to supervise.[1]
Since 1987 and the United States Supreme Court's holding in Shearson/American Express, Inc. v. McMahon, [2], investor claims against stockbrokers and brokerage firms are heard in arbitration before the Financial Industry Regulatory Authority or FINRA.[3]
References
edit- ^ See, http://www.stockbrokerfraud.com/common-claims/
- ^ 482 U.S. 220, 226 (1987)
- ^ http://www.finra.org/ArbitrationAndMediation/