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"Selling away is a prohibited practice in the securities industry. Brokers are not permitted to sell products or investments that are neither offered nor approved by their employing brokerage firm."
FORT LAUDERDALE, FL, January 05, 2023 /24-7PressRelease/ -- Selling away has been a problem in the securities industry for many years. Unscrupulous financial advisors will seek to sell clients products or securities that are neither offered nor approved by their brokerage firm. This constitutes a violation of the rules set forth by the Financial Industry Regulatory Authority (FINRA). It also violates the internal compliance policies and procedures of FINRA member brokerage firms.
Most brokerages have a predefined list of products or investments that they can sell to clients. These products are vetted and examined by high-ranking officials at the brokerage firm to ensure that they are suitable. The purpose of this vetting process is to ensure that investors are protected from being sold fraudulent or high-risk securities.
When selling away occurs, more often than not, it involves investment into a business opportunity in which the financial advisor has a personal interest. Brokerage firms are required to monitor their employees outside business activities to ensure that this does not occur. Unfortunately, selling away is occurring more often in the industry and many financial advisors each year are suspended or barred from the industry for this unlawful practice.
Some of the trademark signs that a financial advisor is selling away occurs when the investment opportunity does not appear on the brokerage firm account statements, the client does not receive any documentation from the brokerage firm about the outside investment opportunity and the money invested is transferred to/from accounts outside of the brokerage firm.
The attorneys at Wolper Law Firm regularly handle cases involving selling away. The attorneys have utilized their knowledge and experience to help clients recoup the money they lost by selling away.
Lead attorney, Matthew Wolper, warns, "Selling away is a prohibited practice in the securities industry. Brokers are not permitted to sell products or investments that are neither offered nor approved by their employing brokerage firm."
About Wolper Law Firm
Wolper Law Firm is proud to boast a 99% success rate in recovering money for wronged investors. Headed by Matthew Wolper, the team of attorneys has substantial experience and knowledge in using the law to fight back against malpractice in investments. The firm was founded after Wolper served as an attorney at Wall Street brokerages and firms. The firm is now dedicated to recovering financial losses for wronged investors. Contact Wolper Law Firm at 954.406.1231 or (toll free) 800.931.8452.
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