Brokerage firms are required to train new brokers and to supervise the sales practices of all their brokers, including those brokers who appear to operate independently in remote offices. Many times we see situations where a firm neglects to supervise or properly train its brokers as to products sold or as to obligations owed to you, the investors. The SEC and case law aptly emphasize that the firm’s duties of supervision are the “cornerstone” of investor protections. Examples of the numerous actions filed by the SEC and FINRA against offending firms include cases where brokers operate in so-called “independent” offices, where a brokerage firms failed to oversee suitability duties of their brokers, where brokers concentrate many of the customers in a particular stock, and where brokers excessively trade customer accounts.

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