Remedies for Sales Practice Violations - Transcript

Ly the sales practice violations do not have embedded within them private rights of action so an untrained lawyer or a layperson who is dealing with a broker dealer the first thing that they’re going to hear about the finra conduct rules is that there’s no private right of action and that’s true but that’s not the whole story the way that the finra conduct rules are applicable in cases against brokerage firms is that they form the basis of breaches of contract and negligence just the way you know let’s say somebody slips and falls on the sidewalk you know the sidewalk is supposed to be even and not cracked and and if somebody trips over a cracked sidewalk they may have a case against the person that was required to maintain the sidewalk because that is common standard in practice well following the finra conduct rules is also common industry practice so in any contract and in any negligence case those conduct rules are read in as the industry standard the duty that they have to the investing public so they’re very important rules they form the basis of not only civil arbitrations and cases but also regulatory actions brought by FINRA.