Dealing With Unregistered Stockbrokers or Brokerage Firms
Most securities broker-dealers are required to register with the SEC and state securities regulators, as well as the Financial Industry Regulatory Authority. According to the SEC, a broker is defined broadly as any person engaged in the business of effecting transactions in securities for the accounts of others, including investment advisors, finders, those who operate platforms to trade securities, financing and even those who provide support services to registered broker-dealers, among many others. Similarly most securities must be registered with regulatory authorities in order to be sold to investors.
Potential Registration Warning Signs
- Failed investments
- Sales of unregistered securities
- Negligence or broker misconduct
- Stock fraud
Both state and federal securities laws exist to protect consumers from unlicensed activity. Certain situations can provide grounds for a securities registration class action, through which investors can seek to rescind any transactions involving unregistered securities or the unregistered brokers and firms selling the securities. FINRA arbitration claims also can be filed regarding the same wrongdoing.
Call a Los Angeles Stockbroker Fraud Attorney Today
If you believe you have dealt with an un licensed stock broker, brokerage firm, or security, you may have certain legal rights that require your immediate attention. You should contact an experienced Los Angeles stockbroker fraud attorney as soon as possible to discuss your rights.