If you have a complaint about a financial advisor or broker, you have a number of options. You can contact the SEC, FINRA, the Ombudsman for Banking Services and Investments (OBSI), or several other government agencies. Here are some tips for filing a complaint. Listed below are some of the most common avenues for complaints. Listed below are some of the best ways to file a complaint.
Investment Fraud Lawyer
The best place to start is with an investment fraud lawyer because they will give you an idea of your case and layout options. Like most kinds of law, investing requires an experienced attorney in investments. The good news is that most firms offer some kind of free consultation. A good place to start is with InvestmentFraudLawyers.com.
FINRA
A broker may face disciplinary action if he or she fails to follow FINRA rules. A broker may have a number of options for addressing the complaint. In the first instance, the broker may choose to negotiate with the FINRA enforcement department or file a formal disciplinary complaint. If negotiations fail, a broker may choose to proceed to a trial before a FINRA hearing officer or appeal to FINRA’s arbitration board.
Another way to protect yourself from investor complaints is to implement a document holder, and work with an attorney to preserve any documents that might be relevant. FINRA member firms are required to preserve any relevant information and documents upon receipt of a complaint. These documents must not be destroyed unless there is a legal reason not to. Investor complaints often begin with informal complaints, and how a financial advisor responds to an investor’s complaint can make or break a FINRA arbitration action.
SEC
The SEC regularly announces new investor fraud cases and recently announced civil actions against two financial advisors. One case involved a real estate broker who raised millions of dollars from investors through a false investment record. He misappropriated $7 million in investor funds and concealed losses. Another case involves an entertainment company that raised money by operating a “boiler room” sales scheme. The SEC is investigating these and other complaints filed against the firm.
In another case, Shillin received more than $300,000 in ill-gotten gains from deceiving investors. One client was duped into purchasing a life insurance policy with a long-term care benefit, but was later diagnosed with stage-four cancer. Shillin was also accused of misrepresenting a policy’s benefits, including the amount of premiums. In addition, he encouraged his clients to sell securities in order to pay for the premiums.
Ombudsman for Banking Services and Investments (OBSI)
The Ombudsman for Banking Services and Investment is a Canadian organization that resolves financial disputes between small businesses and consumers. If you’ve encountered a problem with your bank, credit union, or another financial service provider, you can contact the OBSI to get your problem resolved. They can resolve the issues at their own expense, without the need to go through a court system.
The OBSI is a non-profit organization. Most of its directors are independent, although a minority are appointed by industry groups. The board of directors is comprised of independent and government-appointed representatives. The Ombudsman is independent of industry, and the board of directors sets the organization’s annual budget. The OBSI’s website has a Step-by-Step Complaints Guide that will walk you through the process.
Several government agencies
If you’re concerned that a financial advisor is not keeping your best interests at heart, you can turn to one of the many government agencies that investigate financial advisor complaints. The Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) are the two main government agencies responsible for investigating financial advisor complaints. These agencies also work to protect consumers and prevent fraud. For example, the SEC and FINRA have both taken action to prevent fraud by financial advisors.
The OIEA may share the information it receives from a complaint with other SEC divisions and offices. The SEC may also disclose this information outside the SEC for a number of purposes, including to aid SEC examinations, determine compliance with federal securities laws, and initiate civil and administrative proceedings. In addition to the SEC, other government agencies often receive complaint information from OIEA. FINRA also receives tips about potential securities law violations, which it can use to conduct investigations.
Investor alerts
The Securities and Exchange Commission (SEC) has issued Investor Alerts about complaints filed against investment advisers. These alerts can warn investors about possible fraudulent activity by financial advisors. Listed below are some common scams involving financial advisors. In addition, you should avoid investment offers that seem too good to be true. Most of these investments are fraudulent, and most licensed investment firms do not accept credit card investments or require clients to invest in cryptocurrencies.
Regulation of financial advisors
The Financial Advisers (Complaints Handling and Resolution) Regulations require registered brokers and investment advisors to have policies and procedures for handling complaints from investors. These regulations also set forth guidelines for senior management and board members. Often, the complaints can be resolved locally, but in certain cases, a complaint can be submitted to FINRA.
To find out if an advisor has been subjected to disciplinary action, you can search the FINRA BrokerCheck program. BrokerCheck will reveal information about an advisor’s firm, credentials, and experience. You can also review disciplinary actions against an advisor, such as through the Regulatory Actions Online database. SEC has a tool that allows investors to find out about an investment advisor’s background, professional conduct, and disciplinary actions. Finally, the Investment Advisor Public Disclosure website will show if the advisor is registered with the SEC.
