Section 20(a) of the Securities Exchange Act of 1934 provides as follows: “Every person who, directly or indirectly, controls any person liable under any provision of this chapter or of any rule or regulation thereunder shall also be liable jointly and severally with and to the same extent as such…
Many people are surprised to learn that rescission and restitution is an available remedy in an action against a stockbroker who played a significant role in the sale of an investment, notwithstanding that the broker was not the “actual seller” of the security. Silverberg v. Paine, Webber, Jackson & Curtis, Inc.,…
When advising trust clients, FINRA member firms have a duty to ensure that the investment recommendations they make are suitable in light of “the trust’s investment objectives, time horizon, and risk tolerance.” (FINRA NTM 12-25) (emphasis added). The suitability analysis is informed, in part, by the trustee’s underlying duty to comply…
FINRA’s appeals body, the National Adjudicatory Committee, has upheld a hearing panel decision to permanently bar Glenn Robert King from the securities brokerage industry for engaging in excessive “in and out” trading of Unit Investment Trusts and Mutual Funds in customer accounts, including the accounts of several senior investors. Incredibly,…