Houston, TX Failure To Supervise Law Firm. Our Securities Lawyers Have Been Representing Texas Investors Against Broker-Dealers And Investment Advisors for More Than 30 Years
Since 1990, the Shepherd Smith Edwards and Kantas Houston Failure To Supervise Law Firm (investorlawyers.com) have been helping Texas investors who sustained serious portfolio losses because their broker-dealers failed to properly supervise their financial advisors. Supervisory negligence is one of the most common reasons that broker fraud and misconduct can occur, and it is the customers who end up suffering.
Contact our Houston, TX securities law office today to schedule your free, no obligation case assessment.
What Is Failure To Supervise?
FINRA Rule 3110 requires that brokerage firms fulfill their duty to customers to properly oversee and monitor their employees, including registered representatives, as well as other associated persons:
- Having the proper rules and supervisory procedures in place to fulfill this obligation. This includes written supervisory procedures (WSP).
- Periodically reviewing customer accounts to make sure nothing fraudulent or negligent is happening.
- Providing and ensuring the proper training of their registered representatives, especially regarding how and what they market and sell to investors.
- Engaging in some type of supervision of financial advisors that work out of branch offices where there is no onsite manager.
- Supervising outside business related to securities transactions that involve the firm’s own records and books.
Proper supervision by a broker-dealer is key for preventing broker misconduct or negligence, identifying red flags indicating something may be amiss in customers’ accounts, and stopping fraud. However, proving that your brokerage firm didn’t properly supervise your financial advisor, which contributed to your portfolio losses, can be tough. This is why you need seasoned Houston failure to supervise attorneys representing you.
How Can Our Seasoned Texas Failure To Supervise Attorneys Help?
For an investor to file a failure to supervise claim, the registered representative or associated person they worked with that a brokerage firm has jurisdiction over must have committed a securities law violation; the firm or its supervisors need to have failed in the obligation to reasonably supervise this individual. Even if the broker-dealer had nothing to do with a financial advisor’s fraudulent misconduct, or was unaware of any alleged misconduct, their failure to supervise could make them liable for the losses suffered by a customer.
Such a claim will likely have to be made in FINRA arbitration. There is usually other misconduct alleged, which may have been enabled due to a failure to supervise, such as: selling away, churning, misappropriation, unsuitable investment recommendations, concentration, gross negligence, and more.
Our skilled Houston securities lawyers have a combined over a century’s worth of experience in securities law and the securities industry. We are familiar with the many ways in which supervisory failures by a broker-dealer can make it easy for serious investor losses to occur. Our Texas investment loss recovery firm has the knowledge, resources, and experience to take on the most complex investment loss recovery cases against the largest Wall Street firms.
Can You Win Your Failure To Supervise Litigation?
70-80% of securities lawsuits are concluded via settlement and mutual agreement. Some cases end up making their way through the entire arbitration process. The outcome of your case will likely depend on:
- The quality of your case.
- The severity of the alleged broker-dealer negligence or misconduct.
- The type of damages incurred.
- The arbitrators assigned to hearing your claim.
- The level of experience of each parties’ legal counsel.
Hiring skilled failure to supervise broker attorneys can only maximize your chances for a full recovery. It is also important to remember that arbitration is not the same as court. Shepherd Smith Edwards and Kantas is a respected Texas FINRA law firm that understands this legal forum well. We know what strategies are best suited for arbitration, litigation, mediation, or negotiation.
Because we work on a contingency basis, you will only pay for our legal services if we obtain financial recovery for you. Payment would come from your award or settlement and not directly out of your own pocket.
Contact Our Houston Texas Supervisory Failure Law Firm Today:
Call (936) 251-0033 or (800) 259-9010 today. You can also fill out this online form.
1010 Lamar St #900
Houston, TX 77002