Dimond Kaplan & Rothstein, P.A. Attorneys At Law
Friday, July 4, 2008

Brokerage Firm Liability

While individual brokers often commit the client abuses, employers generally are responsible for the wrongful acts of their employees. Brokerage firms also can be held liable for their own wrongdoing. For example, the NASD and the NYSE require brokerage firms to supervise their brokers. Brokerage firms are obligated to review every transaction in every client account every day. If a broker is engaging in questionable conduct, the firm must investigate the activity for potential misconduct.

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