Tag: omission

FINRA Issues Article Titled Prohibited Conduct

The Financial Industry Regulatory Authority (FINRA) issued a new article called Prohibited Conduct. The article lists 13 actions that are prohibited in the securities industry. These actions include the following:

  1. Recommending unsuitable investment products based on the investor’s profile, objectives and risk tolerance.
    2. Making purchases or sales without the knowledge of the investor, unless the advisor received discretionary authority.
    3. Moving an investor from one mutual fund to another when there is no legitimate purpose.
    4. Misrepresenting and/or failing to disclose information to the investors in regards to an investment.
    5. Removing funds or securities without the knowledge of the investor.
    6. Charging the investor excessive mark-ups, markdowns or commissions on their investments.
    7. Making price predictions, promising investors they will not lose funds or agreeing to share in any losses of the investor’s account.
    8. Securities transactions that violate FINRA’s rules, these are usually private transactions between the advisor and investor in which the firm has no knowledge.
    9. Placing an order for the firm’s account before entering a customer’s limit order when there is no legitimate purpose.
    10. Failure by a market maker to display an investor’s limit order in its published quotes when there is no legitimate purpose.
    11. Not using due diligence when executing an investor’s order, this includes executing at the best price.
    12. Purchasing or selling an investment while in possession of non-public information about an issuer.
    13. Using fraudulent methods to elicit a transaction or induce the purchase or sale of and investment.

If you and have suffered investment losses, please contact the Hanley Law to explore your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.