Brokerage Firms Regulatory Proceedings

Regulatory Proceedings Involving Brokers and Brokerage Firms

Few industries are as heavily regulated as the investment industry. The investing public has to feel that they are being treated fairly in order for the industry to thrive. The wide range of regulatory bodies reflects the concern for reassuring the investing public that they do, in fact, get a fair shake in their investment dealings, that the people giving them investment advice and selling them investments are qualified and truthful, and that there are people to whom they can look for redress if they are treated unfairly.

Complicating matters further is the fact that there are so many different regulatory bodies that have a say over:

• The qualifications of all members of the investment field, including brokers, advisors and brokerage firms
• The manner in which the public—investors—must be treated by these members of the field
• The manner in which these members of the field must treat each other

The Governing Laws

The most common regulatory actions involve the following oversight authorities:

• The Financial Industry Regulatory Authority (FINRA)
• Florida’s Office of Financial Regulation (OFR)
• United States Securities and Exchange Commission (SEC)

Depending on the underlying nature of the investments that have triggered the regulatory action, the rules of the several other bodies may come into play, including the Commodities Futures Trading Commission (CFTC) and the National Futures Association (NFA).

Typical Regulatory Problems That We Handle

There are many different reasons that brokers and broker – dealers end up in conflict with regulators. Typical subjects of dispute include:

• Whether you need to register
• Whether the regulator has unreasonably delayed in acting on your registration application
• Responding to regulatory inquiries or investigations
• Responding to Well’s Notices
• Contesting charges of alleged violations of industry rules and standards
• Contesting any penalty proposed for alleged violations

Get Legal Help

If you are facing an existing regulatory action or think you see one coming down the road, the firm of Todd A. Zuckerbrod, P.A. can help. Your right to work in the investment field my well be at stake, and, with it, your ability to earn a living. Todd has extensive experience in securities regulation, including as a regulator himself for the New York Stock Exchange.

Handling regulatory matters requires an attorney familiar with the rules of the specific regulator involved, and the procedures that this body has in place for making their decisions. It’s also important to understand the perspective of the regulators. While brokers and brokerage firms tend to be focused on immediate concerns that affect their day-to-day business dealings, regulatory bodies more often take a wider and longer term view that takes into account.

The sooner you get an experienced securities lawyer involved, the better. If the regulator is still investigating, an experienced attorney may be able provide information and evidence that affects the course of the investigation, and it is always easier to prevent an adverse regulatory decision than it is to try to get one overturned.

Call the Boca Raton, Florida, law offices of attorney Todd A. Zuckerbrod, P.A. for a free consultation to learn about the best way to proceed.