If you’ve decided to take the leap and invest your hard-earned money in the stock market, it could be a great way for you to increase your wealth. Unfortunately though, investing comes with certain risks that can lead to financial losses if not managed correctly.
If you ever find yourself embroiled in any type of fraud or securities law violation, contacting an experienced securities arbitration lawyer should become your priority immediately so as to protect both your rights and interests.
Here are 7 signs that you may need You Might Need a FINRA Arbitration Lawyer:
1. You Want To or Have Filed a FINRA Arbitration Claim
If you have filed a FINRA arbitration claim or are considering filing one, a knowledgeable lawyer can make sure that you are taking the correct steps in order to secure the best possible outcome.
As a matter of fact, FINRA Arbitration recommends that investors consult with a lawyer before starting the FINRA Arbitration process.
Most successful FINRA Arbitration claims against brokers and advisors are handled by experienced lawyers who understand the process inside out.
You do not want to risk your money and future by trying to navigate this process alone.
2. You are the Victim of Fraud or Misrepresentation
Fraud and misrepresentation are unfortunately common occurrences in the investing world, and if you have been wronged by a broker or advisor you should speak to an experienced lawyer.
Fraud is actually quite common in the investing world and cases range from blatant theft to complex Ponzi schemes. As a matter of fact, billions of dollars each year are stolen from investors as a result of fraud and misrepresentation.
In either case, victims of fraud should always speak to an attorney as soon as possible in order to understand their rights and protect their interests.
3. You Have Lost a Significant Amount of Money Due To The Actions of Your Broker
Yes, the stock market goes up and down but if you have suffered financial losses due to the negligence or misconduct of your broker, you should contact a lawyer.
All investments carry risk.
However, if your investment accounts have lost 5, 6, or even 7 figures due to the poor advice of your broker, you may have a legal case against them.
It is difficult for most investors to spot when their broker is no longer acting in their best interests.
By consulting with a securities FINRA Arbitration lawyer, you can better understand your rights and determine whether or not it may be worth filing an arbitration claim against the broker.
Related Read: Top Tips for Choosing the Best Online Stock Broker
4. Your Financial Professional Has Limited Access to Your Funds
As decreed by FINRA, investors possess certain rights while working with brokers and financial advisors. Clients must be granted timely access to their funds, and any limitations or restrictions imposed must be communicated in advance.
The last place you want to find your investment money is locked up in a brokerage account and inaccessible to you.
If this is the case, then speak with a lawyer right away and find out your legal course of action.
5. Your Broker or Advisor Has Been Making Excessive Trades
Some brokers or advisors may participate in an action called “churning”. Churning occurs when a financial professional makes excessive trades in order to generate commissions.
Some investment accounts allow brokers to make commissions off of trades, so the more trades they make, the bigger their payout is.
Your broker or advisor should be working in your best interest and making trades that are suitable for you and your portfolio. Obviously, this is not the case if they are trading excessively for their own gain.
To the average investor, spotting churning can be difficult. As such, if you have any suspicion that your broker or advisor is churning then it would be best to consult with a lawyer as soon as possible.
6. You Haven’t Heard and Can’t Get in Touch with Your Financial Professional
Your financial advisor or broker should always stay in touch with you and keep you updated on your investments.
Sometimes life happens, but if every time you call or email your broker they are nowhere to be found then it could be a sign of something more sinister.
If your financial advisor or broker is constantly unavailable, it could indicate that they are engaging in unethical activities or hiding something from you.
7. You Need a Professional Opinion on Your Current Situation
Sometimes it is hard to know exactly what to do in a particular financial situation.
If you are unsure about whether or not to file an FINRA Arbitration claim, then it would be wise to consult with an experienced lawyer. As securities is a complex and highly regulated area, having the perspective of a professional can be invaluable.
A securities FINRA Arbitration lawyer can provide you with guidance and advice on whether or not filing an arbitration claim is the best course of action for your particular situation.
The reason we have professionals such as lawyers and financial advisors is to help us navigate our way through the complexities of law, finance, and investments.