Since 1999 our law firm has recovered more than $350,000,000 for victims of investment fraud and misconduct.
Jury Verdict Won Against Prudential Securities $262 Million
Recovered for 100-Year Old Widow $30 Million
Recovered in Retirement Losses $10 Million
Recovered for a Large Group of Individual Investors $6.5 Million
Recovered for Elderly Victim in Ponzi Scheme Case $3.8 Million
Recovered for Elderly Ponzi Scheme Victim $3.2 Million
Recovered for More Than 50 Families of Ponzi Scheme in California $3.2 Million
Recovered for 35 Families in Northeast Ohio $3.1 Million
Losses Recovered for 20 Retirees $3 Million
Recovered for Retired Physician Against Major Wall Street Firm Prior to Filing FINRA Arbitration $2.5 Million
What is FINRA Rule 2010?
The Financial Industry Regulatory Authority (FINRA) is an independent and non-governmental organization that is responsible for writing and enforcing rules that govern registered brokers and broker-dealer firms in the US. According to FINRA, their mission is “to provide investor protection and promote market integrity.”
Understanding FINRA rules can be complicated, particularly for those who do not work in the financial or investment industry. Here, we want to discuss FINRA Rule 2010, as this is often considered the most important securities industry regulation on the books.
Understanding Finra Rule 2010
The language of FINRA Rule 2010 reads, “No member shall effect any transaction in, or induce the purchase or sale of, any security by means of any manipulative, deceptive or other fraudulent device or contrivance.”
Put simply, FINRA Rule 2010 requires that all industry members conduct business with high standards of commercial honor. Members must maintain equitable and just principles of trade. When analyzing the actual language of FINRA Rule 2010, we can see that the provision is fairly broad. This allows the regulatory body to enforce various forms of unethical behavior of a broker or brokerage firm that may not fall in direct violation of any other rule that FINRA has created.
A Brief History of Finra Rule 2010
FINRA Rule 2010 developed out of the principles outlined in the Securities Exchange Act of 1934, specifically from within the provisions of the legislation that required standards of commercial honor to be upheld by any member operating in the securities industry. Unlike other rules that have been developed by FINRA, Rule 2010 is not tailored to address a specific type of misconduct.
You could think of Rule 2010 as a “catch-all” provision contained within FINRA rules. The SEC, in an effort to protect investors and the industry, recognizes that it is impossible to draft a specific rule to address every type of misconduct that could occur in the securities industry. Thus, FINRA Rule 2010 can be a handy tool.
Examples of How Finra Rule 2010 Could Be Used in Investment Fraud Cases
FINRA Rule 2010 is applied on a case-by-case basis. Some of the most common types of actions over the last few years have been deemed violations of FINRA Rule 2010:
- Sharing a customer’s confidential information without their approval
- Misappropriating company or client funds
- Improper solicitation for personal benefits or donations
- Forging signatures or passing bad checks
- Altering various critical financial documents
- Failing to disclose material information
Do You Need to Speak to a Finra Arbitration Attorney?
If you have lost money due to the action or inaction of your financial advisor, or you believe that you were in some way treated unfairly or unethically, you should speak to a FINRA arbitration attorney as soon as possible.
In some cases, you may know the exact circumstances of how you were treated unfairly or unethically. However, you may not be able to actually articulate exactly why you feel you were treated this way. In these circumstances, FINRA Rule 2010 could apply. However, most individual investors do not have the legal experience or resources necessary to fully investigate their case. That is why a securities fraud attorney is going to be so valuable in these situations. At Meyer Wilson, we are ready to help. You can contact us by calling (866) 314-1980 or contact us online to speak confidentially with an attorney today.
More than $350,000,000 Recovered
Voted Best Lawyers in America® for over Ten Years Running
David Meyer is the Immediate Past-President of Public Investors Advocate Bar Association (PIABA)
Over a Thousand Investor Claim Cases Since 1999
Exclusive Focus on Investor Claims & Class/Mass Action Lawsuits
Deep Bench of Skilled Attorneys and Staff Members
Meyer Wilson has represented over 1,000 individual investors in high-stakes claims across the country, and has recovered over $350 million on their behalves. See what former clients have to say about our team.