The FINRA is a self-regulatory organization (Financial Industry Regulatory Authority) that protects investors in the equity and debt securities industry. It is responsible for regularly enforcing discipline, regulations, and examinations.
Today, FINRA handles many subjects leading to increased time between filing and the outcome of said cases. Furthermore, investment advisers should meet the criteria set by the Securities Exchange Commission and FINRA to be registered. These criteria are set to ensure that advisors will always work in their client’s interest, and failing to do so will result in revoked license or even suspension. This should tell you why FINRA Defense Attorney is important.
Reasons You Need A FINRA Defense Attorney
Due to the constantly increasing regulations and new technology, investment advisers today face a lot of challenges. Without knowledge of the ever-changing rules and ordinances, advisers cannot provide their buyers and businesses with the right support. Consequently, investment advisors require the support of FINRA Lawyers to help stay up-to-date and make worthy decisions.
Here are a few things you should keep in mind.
Hire A Lawyer
First and foremost, when facing FINRA Action, you will need a FINRA Defense Attorney to defend you. They can help you understand the intricacies of the issue and will guide you regarding penalties and timeframes regarding the action. You cannot benefit the same from a defense lawyer from the brokerage.
A FINRA attorney can help direct you in mediation proceedings along with sound advice. Legal proceedings can be complicated and can be too much to handle without a professional, so remember to book yourself a defense attorney before you do more.
Learn From The 8210 Letter!
During enforcement action, you will be sent a letter from FINRA explaining everything you need to know about the subject. This letter is what is referred to as the 8210 letters or the Notice of Disciplinary Action.
To begin with, FINRA takes over the custody of the business records of your brokerage. These records will contain sales, trades, securities with previous clients, accounts with violations, records regarding sales, disciplinary matters, or books. The exact detail will vary according to the issue at the moment. You will need a FINRA Defense Attorney to read between the lines and understand everything the letter states. This will help you prepare better for your defense in the case.
The Perfect Response
Most Notice of Disciplinary action can be responded to. At the same time, today, many Notices do not come with this benefit, largely due to the high volume of lawsuits handled by the FINRA on a regular basis. The perfect response to the Notice of Disciplinary Action is to provide a measured response. At this point, the key is to find the balance between additional information and details.
It is necessary that the response should be detailed but also highly specific to the matter. There is no point or advantage to simply indulging in an elaborate response. In addition to the response, you should also include the documents supporting the claim and explanations of the allegations that are made in the case. No doubt, you realize how important this is, and thus you know it’s best to rely on a defense attorney well before taking this step to have their full support.
Self-Awareness Can Go A Long Way
At any point in time, keep in mind that FINRA has all the answers before you’re even made aware of the ongoing investigations. FINRA investigates these matters regularly through industry professionals such as the NACS or the MAR.
If you can manage to remember that other professionals are being enquired on the same by FINRA, it becomes much easier to be proactive and keep a calm mind.
Solving The Case
Once you are given the Notice of Disciplinary Action, you will be given a total of 60 days to respond to it. This allows you to be proactive and settle the problem before the investigation can be concluded. Make use of this opportunity by working with a defense attorney from the beginning and plan a measured response to the notice.
What You Need Is an Expert Witness
An expert witness is one who can understand the intricacies and the complexity of the matter. This role can be played by an expert witness or even an accountant. Your defense attorney may recommend you the same lest it is viewed as an Admission Of Guilt.
Finding The Right Attorney
Before you finalize anything, you should consult with one or more lawyers. Start looking for a lawyer with a specialization in securities arbitration or litigation. You can enquire about the bar associations in your jurisdiction to get a veritable list of lawyers working in this niche. Additionally, many lawyers will offer the initial consultation for free or, at the very least, a small fee. Use this to your benefit to find an attorney you can trust.
Furthermore, refer to consulting directories of attorneys so that you will have a larger list of securities lawyers to go through. Seek lawyers by state and jurisdiction so that they will be most knowledgeable when dealing with your subject. They should also have experience in the niche of securities arbitration and knowledge of FINRA’s guidelines.
When you are given the Notice of Disciplinary action and have a pending expungement action, your first course should be to get the help of a defense attorney. With this, you will be able to write a good and measured response and handle the lawsuit further. It is highly important for investment brokers to understand the challenges that come up in this niche.
Speak to a defense attorney so that you can handle the subject with due diligence. Their knowledge of the legal system and your rights will greatly benefit your continued success.