Failure to SuperviseFinancial and securities brokerage firms have a legal duty to supervise their brokers and their brokers' recommendations to clients to ensure compliance with and prevent violations of the rules of the security industry. When an individual broker is negligent or acts in an unlawful manner against the interests of the client and that client suffers damages as a result of such wrongdoing, the firm may be held liable for the investor's losses.
There are also instances in which a brokerage firm may be held liable for failure to supervise without the individual broker being held responsible for damages. Brokers are required to complete standardized training and pass exams administered by the FINRA. If it is found that a brokerage firm did not properly train a broker, did not ensure the broker obtained the necessary license, or furnished the broker with false information, the brokerage firm alone may be liable for damages caused by the broker's negligence or misconduct.
Proving a failure to supervise claim requires a thorough investigation of the facts surrounding your claim and a diligent attention to detail. With over fifty years of combined legal experience, and having successfully represented over 800 individual and institutional investors, the securities arbitration lawyers at Meyer Wilson have the expertise, experience and resources necessary to review, investigate and aggressively pursue your claim for failure to supervise.
We have won hundreds of millions of dollars in losses for clients nationwide, including in cities such as Miami, Dallas, San Diego and Cleveland. For assistance with your failure to supervise claim, call us toll-free at 1.866.827.6537 or complete our online form for a free case evaluation.