FINRA Supervision Rule

When you suffer losses due to a lack of broker supervision, you may be entitled to financial compensation based on the FINRA supervision rule. Get help exploring your legal options by reaching out to an experienced FINRA arbitration lawyer.

The Financial Industry Regulatory Authority (FINRA) has a series of rules in place that are designed to protect investors and hold stockbrokers, financial advisors, and firms to a high standard. But when these rules are broken, and an investor loses money, the firm and other employees involved can be held accountable in FINRA arbitration.

If you have lost money, and you believe the FINRA supervision rule was broken in your case, a highly trained FINRA arbitration lawyer at Wolper Law Firm, P.A. may be able to help you recover your stock losses. If we are able to take on your case, we’ll work tirelessly to build a compelling case heard by FINRA arbitrators so you can get the most out of your complaint.

What Is the FINRA Supervision Rule?

FINRA Rule 3110 focuses on supervision. Here, firms are required to have systems in place that supervise their financial advisors, stockbrokers, and other associated personnel. Rogue brokers and financial advisors are often able to get away with defrauding investors over a period of time due to a failure to supervise.

Had the broker firms kept a close eye on the activities of their associates, it’s possible that the fraud or schemes could have been caught sooner or prevented from happening altogether, depending on the details of the case.

For this reason, investors who may have endured considerable losses on the stock market or through other investment opportunities can pursue FINRA arbitration against firms for a failure to supervise.

FINRA Arbitration for Failure to Supervise

Although FINRA arbitration may be intimidating, with the assistance of a qualified stock loss lawyer, investors can maximize their chances of recovering their losses. FINRA arbitration proceedings are similar to court, with several exceptions.

For example, a court case is heard by a judge and possibly a jury; FINRA arbitration proceedings are heard by one or a panel of three arbitrators, depending on the complaint amount. Investors may be hesitant to move forward with FINRA arbitration when they learn that decisions are not able to be appealed.

However, if you were to bring your case to court, the respondent can file appeal after appeal. Even if you eventually win, it could be decades before you are repaid, if ever. In arbitration if you win, the arbitrators must compensate you within thirty days of their decision.

Reach Out to a FINRA Arbitration Lawyer

When you are ready to do something about the losses you suffered when your firm broke the FINRA supervision rule, you can contact a respected FINRA arbitration lawyer at Wolper Law Firm, P.A. to discuss your legal options. To schedule your free, no-obligation consultation, give our office a call at 800.931.8452 or submit the online contact form we have included below.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]