{"id":352691,"date":"2016-04-04T10:42:08","date_gmt":"2016-04-04T15:42:08","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/securities-law\/responsibilities-of-investors-and-brokers.html"},"modified":"2024-05-30T15:14:24","modified_gmt":"2024-05-30T20:14:24","slug":"responsibilities-of-investors-and-brokers","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/securities-law\/responsibilities-of-investors-and-brokers.html","title":{"rendered":"Responsibilities of Investors and Brokers"},"content":{"rendered":"\n
\n \n
\n

Responsibilities of Investors and Brokers<\/h1>\n
\n
\n By Oni Harton, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last reviewed\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Today’s financial landscape offers investors various financial products, including stocks, bonds, and mutual funds. Many investors rely on professional help to navigate the intricacies of buying and selling securities. These professionals are critical, whether they are called securities brokers, investment advisers, stockbrokers, or registered broker-dealers.<\/p>\r\n

When working with a broker, understanding the process and obligations of both parties is crucial. How can investors avoid disputes with their broker? Understanding investor protections and the broker-dealer’s responsibilities will help avoid many issues.<\/p>\r\n

FINRA<\/a>, the Financial Industry Regulatory Authority, is a not-for-profit securities industries regulator. It’s a self-regulatory organization (SRO) overseen by the Securities and Exchange Commission (www.sec.gov<\/a>).<\/p>\r\n

Congress authorized FINRA to protect America’s investors by ensuring the broker-dealer industry operates fairly and honestly. FINRA rules<\/a> play a critical role in ensuring the integrity of America’s financial system.<\/p>\r\n

This article provides a general overview of the primary responsibilities of investors and brokers under applicable rules. It also explains how to get help if you can’t resolve a dispute with your broker.<\/p>\r\n

Broker Responsibilities<\/h2>\r\n

Brokers owe customers particular duties of care. Brokers owe the highest duty of loyalty and fidelity. If they fall short, they could be subject to securities litigation claims<\/a>. Investment activity violating those duties may entitle you to bring a breach of fiduciary duty claim.<\/p>\r\n

FINRA oversees broker-dealers. It helps define broker responsibilities. FINRA does the following:<\/p>\r\n