Investment Firms Must Adequately Supervise Their Brokers


By law, brokerage firms are required to have reasonable supervisory policies and procedures in place, and to adhere to those policies and procedures. In order to protect the interests of their clients — not to mention their own reputations — firms are obligated to make sure their brokers are doing business according to the rules.

As you may be aware, even major firms have been known to fall far short of industry standards with regard to the practice of supervision. The results can be problematic for investors, who can experience catastrophic losses when an unscrupulous or unqualified broker is allowed to harm those whose money is at stake.

Do You Have A Case Against A Brokerage House?

If you have suffered loss because of a stockbroker’s negligence or ill-advised investment recommendations, you may have a case against the brokerage house based on its failure to supervise — and you will do well to speak to an attorney experienced in matters of broker misconduct that may have been prevented with appropriate supervision. If your case is strong, you may be able to recover much or all of what was lost, plus legal fees.

To that end, Timothy J. Dennin, P.C., has been representing domestic and internationally based investors since 1990, compiling an extraordinary track record of recouping investments. His extensive experience in the securities industry includes:

  • Inadequate supervision by prominent investment firms that permitted inappropriate behavior to go unpunished
  • Cases involving misrepresentation and omission, conversion, forgery, unauthorized trading, theft and other illegal behavior by brokers
  • Firms that failed to disclose complaints and court proceedings against a broker, typically because the firm did not want previous misconduct to be exposed
  • FINRA arbitration and mediation

Contact Our Lawyer For More Information

Timothy J. Dennin is a skilled Northport lawyer for brokerage failure to supervise cases and other securities matters. Contact the New York firm for a free consultation: 866-437-9475.