If you provide investment advice, you likely encounter a number of different hurdles every day. Aside from dealing with difficult customers and uncertainty over complex regulations, some investment advisers face serious threats to their livelihood as a result of FINRA violations (even if the claims are false). It is pivotal to protect your future and understand any legal options you have if you are in this position.
Sometimes, relatively minor violations are handled without any serious penalties or enforcement action, and investment advisers are only given a warning. However, more serious cases often bring the threat of serious repercussions, some of which jeopardize an investment adviser’s ability to continue working in the industry.
How can FINRA violations threaten your career?
According to the Financial Industry Regulatory Authority, FINRA closely investigates allegations of securities violations and even pursues enforcement, such as preventing violators from operating in the brokerage industry and imposing fines. Moreover, if you sustain serious damage to your reputation, it is very likely that you will have a harder time finding new customers and many people lose long-term customers as a result of these allegations.
How can you address allegations of FINRA violations?
For starters, it is crucial to prepare for a FINRA investigation and have a clear understanding of your legal rights. Try to remain calm and prevent negative emotions from interfering with your ability to focus on your case. When it comes to FINRA violations, every case is unique, so you need to take an individualized approach to the accusations that you are facing and understand what is at stake.