Tampa Securities Litigation Lawyer
When an individual is trading or investing in securities through a broker, the broker has a special relationship with the investor known as a fiduciary relationship. This means the broker is required to deal with the investor in good faith and owes duties of loyalty and fidelity. The broker should not act in a way which conflicts with the investor’s interests or advances the broker’s own financial interests at the investor’s expense. Sometimes it is difficult to know whether a broker is acting inappropriately or committing professional malpractice. The experienced Tampa securities litigation lawyers at Barbas, Nuñez, Sanders, Butler & Hovsepian have the knowledge and skills necessary to understand when a broker’s actions do or do not constitute unethical or unlawful conduct. Our Tampa securities litigation lawyers work to protect our clients’ rights and promote their interests in the prompt, effective resolution of broker-dealer disputes in Tampa.
Common Types of Broker-Dealer Disputes
Stockbrokers may act as brokers or dealers, depending upon whether they are executing orders on behalf of their clients or trading for their own account. The scope of duties owed by a broker to the client depends in large part on the particular broker-client relationship. Some clients may be the ones to initiate trades or approve all trades in advance, while others set their goals and parameters and leave standing orders with their broker. The goal of the broker should match the goal of the investor, which in most cases is to make the most of investments and maximize their return. Disputes can arise when the broker’s activity is seen to conflict with the investor’s needs and goals, but the resolution of those disputes can be complicated, as in the following cases:
- Excessive trading – Excessive buying and selling (churning) of securities solely to generate commissions rather than to further the investor’s goals can be both illegal and unethical, but when is the broker’s activity excessive? How is this determined?
- Unsuitable investments – The broker should recommend investments which reflect the stated goals and objectives of the investor, in line with the investor’s age and needs. Is the investor retired or close to retirement? Have the investor’s goals been clearly communicated to the broker?
Allegations of unauthorized trading, negligence, misrepresentations, omissions, and outright fraud have all been alleged under various circumstances. When investors are relying on their broker and their broker knows it, there is a high duty to act in good faith in the client’s best interest. Brokerage firms, for their part, should supervise their brokers and review trades that are submitted, promptly investigating any suspicious activity.
Knowledgeable and Experienced Tampa Securities Litigation Lawyers
U.S. securities laws are so highly technical and complex that even scholars and experts can disagree over whether a particular activity represents lawful or prohibited conduct. If you find yourself enmeshed in a broker-dealer dispute in Tampa, contact our office to consult with an experienced Tampa securities litigation lawyer who is well-versed in these matters. Our Tampa securities litigation lawyers count among our firm’s partners a member of the National Association of Securities Dealers (NASD) Dispute Resolution, Inc. Board of Arbitrators, who is experienced in the resolution of monetary and business disputes between investors and their securities firms, as well as between firms. Call (800) BARBAS-LAW, or contact us online to schedule a consultation.