FINRA Rule 2010

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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.

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  • Over a Thousand Investor Claim Cases Since 1999
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  • Deep Bench of Skilled Attorneys and Staff Members

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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.

  • “I primarily worked with Courtney Werning throughout the process and she was informative and knowledgeable. I trusted and fully recommend Courtney and her team.”

    - S.R.
  • “The communication throughout the process was on par - and they took the time to indulge me with the various questions and opinions.”

    - R.G.
  • “What I truly appreciated was getting a great result for my Mom with limited involvement/stress on her.”

    - S.W.
  • “We went to arbitration with the other respondent and I got to see firsthand the level of professionalism and expertise the Meyer Wilson firm can deliver.”

    - D.V.
  • “Chad would take the time to call and talk with me. His explanations were always clear and concise. I also appreciate all the effort put into the details and statistics required to argue this case.”

    - P.N.
  • “Meyer Wilson was able to produce the results that we felt were obvious and warranted while several other firms and even state offices simply had trouble understanding let alone moving the case forward.”

    - B.K.
  • “My overall experience was positive and I would encourage anyone who even thinks they have been a victim of stockbroker misconduct to call David.”

    - S.T.
  • “Meyer Wilson represented me in a suit brought last year against my brokerage firm, securing a very fair and equitable settlement for me.”

    - R.G., M.D.
  • “Right from the start, you had the passion and desire to win this case for us. I have never worked with an attorney or firm as compassionate as yours. I would highly recommend your firm to anyone.”

    - G.A.

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