Soreide Law Group has announced the availability of a FINRA “brokercheck tool” designed to help individuals research financial advisors both before and after hiring one.
For more information, visit https://www.securitieslawyer.com
The broker check tool was created several years ago with the intention of educating the public on their financial advisors’ past misconduct and the database has been continuously updated ever since thanks to data provided by FINRA. This latest update contains the most recent findings and case information for Q4 2022.
“Sometimes, stockbroker misconduct is obvious such as in the case of theft. However, there are always more subtle ways that financial advisors can do damage to accounts that result in substantial financial losses that may not be noticeable,” says lead attorney Lars Soreide. “Many cases handled by Soreide Law Group involve brokers selling unsuitable positions or overconcentrating portfolios, taking on more risk than is necessary.”
There are few ways to learn if this could happen but the Financial Industry Regulatory Authority or “FINRA” allows the public to look up past complaints against their financial advisors for free using the FINRA broker check tool. Contained within this database are investment professionals who have engaged in overleveraging, excessive commission, failure to limit losses, overly risky trading, overconcentration, and more.
The firm explains that past complaints are a good indication of future misconduct. In one study, underscored in FINRA NOTICE to MEMBERS 03-49, in 2003, FINRA conducted a review of the CRDs of all 663,000 registered representatives, and only 2,751 (.41%) had been the subject of three or more customer complaints. “This means that if there are 3 customer complaints on the stockbroker’s record on FINRA broker check, they would rank in the top one-hundredth percent of all registered representatives for customer complaints,” explained Lars Soreide. “This is a red flag for any investor that should at least prompt one to investigate further.”
“If there is a concern of potential financial crimes or negligence of this nature, it is imperative that one cross-reference the broker check database to determine whether this type of stockbroker misconduct has happened in the past,” added Lars. “Soreide Law Group utilizes a team of talented experts and forensic analysts who specialize in stockbroker misconduct. They only focus on representing consumers in FINRA arbitration, which is a complex process that uses a variety of state, local, and federal statutes to recover funds out of court.”
In addition to its quarterly updates, the Soreide Law Group also maintains a blog – available on its website – which provides a near-daily feed of financial professionals who have recently been accused of the actions listed above.
Soreide can potentially recover investment losses suffered as a result of securities fraud. They have already helped hundreds of clients recover millions from brokers across the country.
If the broker check database shows that a broker may have engaged in negligent behaviors, it is wise to contact experienced securities lawyers at Soreide Law Group to further discuss bringing a potential case; they can be reached at 1-888-760-6552. The firm provides complimentary consultations and represents defrauded investors nationwide on a contingency fee basis through the FINRA arbitration process to recover funds in such cases.
To read more about what constitutes securities fraud or for a quick link to FINRA’s brokercheck tool, visit https://www.securitieslawyer.com
Soreide Law Group
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Edition Biz journalist was involved in the writing and production of this article.