How to File a Complaint against a Stockbroker

• December 10, 2019
• Investor Education

Discovering that your stockbroker may have wronged you can be devastating. Not only are you likely suffering from considerable financial losses, but someone you trusted to help you achieve your goals put their own interests before yours, leaving you shocked. 

Sadly, stockbroker misconduct is alarmingly common. But the Financial Industry Regulatory Authority (FINRA) has implemented ways for you to ensure that you not only secure repayment of the money you lost in the investment in question, but you are able to bring this scheming stockbroker to justice for their actions. Doing so could mean another investor is saved the same experience you are currently going through.

Continue reading to learn more about when to file a FINRA arbitration claim for a stock loss and the things you need to know most about your FINRA arbitration claim and hearing.

When to File a Stockbroker Complaint

Many investors will put a lot of trust into their stockbroker for a number of reasons. Maybe they simply don’t have the time to handle such trades on their own, or perhaps they just came into some money and have no idea where to start with investing. 

In any case, you should be able to trust your broker with your money. Sadly, blind faith in your stockbroker could mean losing out on substantial monies. 

Stockbroker misconduct is not only a violation of the duty of fair dealing, but it is against FINRA compliance regulations. This means that if you’ve lost money due to churning, unsuitable investments, unauthorized trading, or some other type of broker misconduct, you can file a FINRA arbitration complaint and be repaid for your losses if your hearing is a success.

Filing a FINRA Arbitration Claim

If you are interested in filing a FINRA complaint, you can do so by first filing a statement of claim against the stockbroker who took advantage of you. FINRA will review the claim and determine if the grounds warrant an arbitration hearing. If they do, you’ll be granted a hearing before either one or a panel of three arbitrators, depending on how excessive your stock losses were.

Your hearing will be your chance to tell the arbitrators what has happened to you. We’ll present all of the financial records and documentation needed to support your case and supply fact and expert witnesses to testify on your behalf. Then, the other party will have the chance to do the same.

Then the arbitrators will review all of the evidence and testimony presented on both sides to determine whether the broker engaged in misconduct and if you are entitled to repayment of your losses. 

Consult a Stockbroker Misconduct Lawyer

Filing a complaint against a stockbroker is the first step you need to take if you hope to recover the financial losses you endured due to broker negligence. 

You can contact a highly experienced stockbroker misconduct lawyer at Wolper Law Firm for more information about how to start with your FINRA arbitration claim. Give our office a call at 800.931.8452 or fill out the confidential contact form located below to schedule your free consultation at your earliest convenience.