Can I file a complaint against my broker in addition to pursuing arbitration?

If you feel that other investors could also be at risk of losing money because of the broker’s misconduct, you may want to file a complaint with the appropriate authority, such as the state securities commission, Securities and Exchange Commission or one of the self-regulatory organizations.

The primary regulatory organization is the Financial Industry Regulatory Authority (FINRA), which supervises about 4,700 brokerage firms, 167,000 branch offices and 635,000 registered securities representatives. A complaint can be made through FINRA’s investor complaint center by completing the online form located on the website, mailing the complaint or faxing it.

While these regulatory agencies may investigate your claim, they will not recover your financial losses resulting from any alleged investment fraud. In order for an investor to recover losses they suffered as the result of investment misconduct by their stockbroker, financial advisor or brokerage firm, the investor must pursue legal action through either arbitration or court (depending on the circumstances).