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Introduction
This information is in response to common inquiries regarding
whether or not a client in a specific situation might have
a chance to recover all or a portion of their losses from their
broker/dealer.
Generally an investor is responsible for his or her own investment
decisions and losses. However, the investor has the right to
expect that the broker/dealer and its salespersons deal fairly
and put the customer’s interests before those of the
broker/dealer and the salesperson. This includes making recommendations
concerning investments and investment strategies that are suitable
for the investor based upon the investor’s age, financial
status and resources, income, investment horizon, investment
objectives, tax status, risk tolerance and financial needs.
The investor also has a right to expect accurate and honest
analyses from the broker/dealer and accurate, current and complete
information from his broker/dealer and representative regarding
the recommended investment decisions. Further, a broker/dealer
and/or the salesperson may not commit frauds or engage in fraudulent
acts and practices in connection with the transactions, and
the broker/dealer is required to supervise the salespersons
to prevent such fraudulent conduct.
This is not a detailed discussion of the federal and state
securities laws- the primary focus is the conduct of broker/dealers
and their salespersons.
Next topic: Background
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