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Unexpected Investment Losses? 3 Key Facts About Securities Arbitration

April 24, 2017 Blog

For individual investors, securities arbitration through the Financial Industry Regulatory Authority (FINRA) provides a streamlined opportunity to recover fraudulent investment losses. If you have experienced sudden and unexpected losses in your investment account, here are six key facts you need to know about FINRA arbitration:

1. To File, Your Broker or Advisor Must be Registered with FINRA.

In order to be eligible for FINRA arbitration, you must have suffered investment losses in an account managed by a broker or brokerage firm that is registered with FINRA. All legitimate brokers and brokerage firms should be registered, and you can use FINRA’s BrokerCheck® tool to find out if your investment manager is a FINRA member.

2. You Have Six Years to File for FINRA Arbitration.

Under FINRA’s arbitration rules, investors have six years to file for arbitration. This “statute of limitations” runs from the date of the fraudulent loss. While six years is a long time, (i) your losses may be spread out over an extended period of time, and (ii) filing promptly can increase your chances of securing a financial recovery.

3. Through FINRA Arbitration, Investors Can Recover Fraudulent Investment Losses.

Investing inherently involves a risk of loss. Not all losses are fraudulent, and not all losses are eligible for FINRA arbitration. If your losses are the result of market conditions, your broker may not have done anything wrong.

However, broker fraud takes many forms, and if your losses do not appear to be tied to market factors, you should discuss your rights with an attorney. Some of the most common forms of broker fraud include:

  • Breach of fiduciary duty
  • Excessive trading
  • Misrepresentations and omissions
  • Over-concentration in stocks or other investments
  • Unauthorized trading
  • Unsuitable investments

For more information about each of these forms of broker fraud, you can read: Common Causes of Action in FINRA Arbitration.

Contact Zamansky LLC for a Free and Confidential Consultation

The investment fraud lawyers at Zamansky LLC represent individuals in FINRA arbitration nationwide. We provide free case evaluations, and we do not charge any legal fees unless we help you secure a financial recovery. To find out if you are eligible to file for arbitration, call us at (212) 742-1414 or request your free case evaluation online today.

Client Reviews

“Jake Zamasky and his colleagues represented me in a FINRA arbitration case against a large multinational bank and succeeded in obtaining an award for the full amount of my investment losses. I would highly recommend the Zamansky firm for their experience in securities litigation, their level of detailed research and case preparation, and their ability to effectively fight for what’s right.”

Richard R.

“Throughout my entire case, Jake Zamansky was incredibly responsive and spent time walking me through each step of the process. He is professional and worked with my challenging schedule, even meeting with me nights and on weekends. He knew exactly which turn to take when it came to my case and yet was respectful of any decisions I wanted to make resulting in a positive outcome.”

Donald A.

“Jake Zamansky and his firm represented me in a FINRA arbitration case to recover investment losses. Jake and his team were very professional and worked very hard preparing for trial and then reaching a substantial settlement of our case. I would highly recommend them.”

William E.

“Jake Zamansky represented me in a FINRA arbitration case which allowed me to recover a substantial portion of investment losses. He is truly an expert in this space and I would highly recommend him to those investors who may have been been a victim of investment fraud.”

Chris K.

“Jake and his team did a great job communicating with me throughout the process of my lawsuit. I would recommend him to anyone looking to sue UBS for unethical practices.”

Mike A.
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