FIRNA is an acronym for the financial industry regulatory authority.
FINRA is a not for profit organization, authorized by congress to oversee the regulation of investment professionals. FINRA writes and enforces rules of conduct governing brokerage firms and registered representatives. They oversee the licensing of investment professionals, and conduct audits and investigations to ensure that the firms and individuals remain in compliance with the securities laws.
FINRA also operates the largest arbitration forum in the country, where investment related disputes are heard and decided.
FINRA maintains a database of financial professionals, known as Broker Check. Contained in this database is information on a firm or individuals licensing, qualifications, and disclosures, including customer complaints and regulatory investigations. Always check out the individual you are trusting to manage your money. If he or she isn’t FINRA licensed, or if broker check turns up a large number of customer complaints, it may be wise to reconsider your choice of advisors.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery and our securities attorneys have successfully resolved over 1000 investment loss cases over the past 20 years. Recoveries for clients top $40 million. The types of claims we have successfully handled include those involving unsuitable investments (suitability claims), excessive trading or “churning”, misrepresentations and omissions, unauthorized trading, over-concentration of illiquid or overly risky investments, pump and dump scams involving “penny stocks”, direct participation programs (private placements) involving real estate investment trusts (REITS), oil and gas exploration programs, leasing equipment deals and receivable financing, promissory notes whether sold through a broker dealer or as part of the outside business activities of a registered representative, ponzi scheme losses, failure on the part of the broker dealer to perform due diligence, state securities law (blue sky) violations and failure to supervise.
Investment losses can be recovered through a process known as FINRA arbitration. FINRA regulates broker dealers that sell investments, and provides an arbitration forum to resolve investor disputes. Investors can pursue claims against their brokerage firms in the FINRA arbitration forum. Common claims in the forum are those for suitability, breach of fiduciary duty, misrepresentations and omissions, negligence, violation of FINRA rules, state and federal securities laws violations, elder abuse, breach of contract and failure to supervise. On average, the recovery process takes approximately a year, from start to finish.
FINRA’s rules require that all investment recommendations made by licensed financial advisors be suitable in light of a customer’s needs, objectives and risk tolerance. In addition, all registered representatives are required to be properly supervised, with periodic inspections and reviews by qualified supervisors, whose job it is to vigorously investigate suspicions of wrongdoing (red flags).
If you have suffered investment losses please call The Law Office of David Liebrader at (702) 380-3131 for a free, confidential consultation