![]() Silver Law Group has represented investors in FINRA arbitration to recover money from brokers who improperly borrow money from customers, invest customers in personal investments or projects and for breach of fiduciary duty when stockbrokers improperly serve as trustees or beneficiaries of a will or trust. In many cases, brokerage firms may be held liable for failing to supervise the financial advisor or other negligence. However, in most cases, investors hire investment fraud attorneys to pursue their losses against the advisor and/or the brokerage firm through FINRA arbitration to recover those losses. FINRA routinely bars members who improperly take loans or otherwise takes money from customers. Indeed, it is strictly prohibited unless certain conditions are met. For the most part, this type of borrowing and lending is disfavored. Merrill Lynch, Pierce, Fenner & Smith Incorporatedįor example, FINRA Rule 3240 governs borrowing and lending arrangements between registered investment advisors (RIAs) and customers of their member firm. However, these individuals remain bound by the securities arbitration agreement to arbitrate any disputes between themselves and their former customers: NAME According to FINRA Disciplinary actions for August 2021, the following individuals were suspended from FINRA and cannot currently work for a FINRA brokerage firm for failing to provide FINRA with information it requested or to keep information current with FINRA pursuant to FINRA rules.
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