Internal Investigations - Transcript

In the securities industry you will find that from time to time there are internal investigations. Sometimes there’s an internal investigation by a regulator the SEC or FINRA who have regular audits and those the firm generally is concerned with its own conduct, its own supervision, but the regulators are going to dig deep into your files at times or they’re going to pick select people and dig in to see if there’s been any breach of the FINRA rules or the SEC rules.

Other times there’s investigations of you directly, so when there’s an investigation of you directly a customer makes a complaint and it could be frivolous like for example oh my my account went down 10% but once they start looking into that account other things might surface, time and price discretion, failure to get all the appropriate forms filled out, and so one must get a lawyer before they actually write usually they have to write a letter to the firm what happened with this customer.

They should be doing that with a lawyer you’re too close to it to write something that is succinct, follows all the rules, and make sure that it doesn’t get you embroiled in something larger.

A lot of people think oh if i just tell them everything everything’s going to be fine but really, again, they’re going to have a lawyer that represents them. You need a lawyer that represents you to make sure that you don’t set off any landmines.