Sales Practice Violations


The Financial Industry Regulatory Authority (FINRA) has established strict rules for brokerage firms and financial advisors in connection with the standards of care for customer accounts. Misconduct on the part of financial advisors and brokerage firms could result in a cause of action brought by investors to recover their investment losses. Misconduct takes many forms, including fraud, deceptive sales practices, and unsuitability.

Deceptive sales practices can cause consumers to make unsuitable investments and suffer unexpected losses. Financial advisors and brokers can be held accountable for a violation of FINRA sales practice rules. Zamansky LLC represents investors who believe a broker or financial advisor committed sales practice violations.

The Rights of Investors After Sales Practice Violations

According to the Financial Industry Regulatory Authority: “Sales practice violation is defined… to include any conduct directed at or involving a customer which would constitute a violation of any rules for which a person could be disciplined by any self-regulatory organization; any provision of the Securities Exchange Act of 1934; or any state statute prohibiting fraudulent conduct in connection with the offer, sale, or purchase of a security or in connection with the rendering of investment advice.”

If an investor believes that a broker or advisor violated sales practices, he or she can file a complaint with FINRA and the matter will be resolved through arbitration proceedings. Investors can also file a lawsuit or join a class action suit with the goal of recovering funds lost due to violations. In such lawsuits, it is the investor’s burden to demonstrate that the broker or financial advisor’s actions constituted a breach of sales practice rules.

Misrepresentation of material facts, negligence, violations of the “know your customer” rule, and securities over-concentration all constitute violations of rules regarding sales practices. Investment advisors and brokers who misled investors on the risks of oil and gas investment stocks and funds, over-promised on the benefits of such securities and/or over-concentrated investments in high-risk energy investments can be held responsible under the law for their deception and failure to protect investors’ bests interests.

Zamansky LLC understands the law and the process investors can use to recoup their losses when a trusted broker or financial advisor has violated the rules. Our firm has represented clients pursuing claims against some of the largest brokerage houses in the nation and we have served as lead counsel on investment fraud class actions. We focus on helping the many investors misled by false promises with respect to funds and master limited partnerships that concentrated in oil, gas, and energy investments. Investors seeking low-risk, high yield investments should not have to bear the burden of massive losses on investments which were marketed as safe and low-risk.

Recover Your Investment Losses

As experienced investment loss attorneys, our attorneys understand the devastation of financial loss due to deceptive and inappropriate financial advice. If you were the victim of sales practice violations and experienced financial damage as a result, contact a stock loss lawyer at Zamansky LLC today to schedule a confidential consultation.