Brokerage firms have a legal duty to supervise their brokers and their brokers' interactions with clients to ensure compliance with and prevent violations of the rules of the security industry. When an individual broker acts in an unlawful manner against the interests of the client and that client suffers damages as a result of such wrongdoing, the firm may be held liable for the investor's losses if the firm failed to reasonably supervise that broker.
There are many scenarios in which you could have a failure to supervise claim against the brokerage firm. In many cases, the brokerage firm is responsible for financial losses.
Examples of failure to supervise claims include the following:
A lot of investigation is needed in this type of claim, which is why you need to ensure that the attorney you choose has the necessary experience and background to build your case.
FINRA rules state that a brokerage firm must have reasonable systems and procedures in place to monitor employees and protect against investment fraud. Each firm must keep a written copy of its policies at each office that is designated an office of supervisory jurisdiction, and also must designate a supervisor that is responsible for the oversight.
These FINRA rules require compliance with the following (as examples):
Proving a failure to supervise claim requires a thorough investigation of the facts surrounding your claim and a diligent attention to detail. Fortunately, Meyer Wilson has spent decades of collective experience in this area. Because our practice is devoted entirely to serving the victims of investment misconduct, our skills are well-honed and perfectly suited to your case. We have the necessary resources and insight to investigate and aggressively pursue your case until it reaches a just conclusion. Our securities fraud attorneys won over $350 million for our clients because Meyer Wilson has the experience and skill to represent your interests effectively.