Securities Fraud Law Firm Dedicated to Investor Rights
Kons Law Firm represents investors nationwide in securities arbitration and litigation matters. Committed to protecting investor’s rights, the Firm helps investors recover the investment losses they may have suffered as a result of securities fraud, investment fraud, financial advisor misconduct, or unsuitable investment recommendations.
The Firm’s practice is national in scope – routinely practicing throughout the United States. The Firm also associates with co-counsel or other securities attorneys to provide the best possible representation to its clients.
FINRA Arbitration Lawyer
The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA (formerly known as the National Association of Securities Dealers or the NASD) regulates approximately 4,345 brokerage firms and approximately 635,145 registered securities representatives. FINRA is dedicated to facilitating investor protection and market integrity through effective and efficient regulation of the securities industry.
FINRA operates the largest dispute resolution forum in the securities industry to assist in the resolution of disputes between and among investors, brokerage firms and individual brokers. FINRA arbitration is the primary means by which disputes between investors and their financial advisors (and their brokerage firms) are resolved. FINRA arbitration is an alternative to litigation or mediation in order to resolve a securities dispute.
In most instances, an investor must arbitrate their securities dispute through FINRA arbitration if it is required by a written agreement between the investor and the brokerage firm, if the dispute is with a FINRA member, or if the dispute involves the securities business of the brokerage firm and/or the stockbroker. As a result, in most instances, investors have no choice but to pursue resolution of their investment loss claims through FINRA arbitration.
FINRA also operates a mediation program to help investors with claims against their financial advisor and/or brokerage firm find a mutually acceptable solution to the dispute. According to its statistics, FINRA mediation has achieved an 80% success rate — parties who mediate their disputes through FINRA resolve approximately four out of every five cases.
Investment Adviser Arbitration
The term Registered Investment Adviser (RIA) is used to describe an investment advisor (often spelled as an investment adviser) that is registered with the Securities and Exchange Commission (SEC) or a state securities regulatory agency.
RIAs are typically individuals investment advisors or investment advisory firms that receive compensation from investors for giving advice on investing in securities such as stocks, bonds, mutual funds, or other securities. Unlike FINRA registered brokerage firms (known as broker-dealers), registered investment advisers are typically paid as percentage of the assets they manage, as opposed to a commission on the securities they sell like stockbrokers are compensated.
Investment advisors and investment advisory firms are permitted to include arbitration clauses in their advisory agreements. As a result, many disputes between investors and investment advisory firms are resolved through binding arbitration before the American Arbitration Association. AAA arbitration is a common forum for the resolution of complex commercial disputes, such as securities disputes involving investment advisory firms. In some instances, securities disputes involving a investment adviser or an investment advisory firm will also be resolved through securities arbitration or securities mediation before JAMS. If the investment advisory agreement does not include an arbitration clause, disputes between investors and an investment adviser or investment advisory firm are litigated in court.
The National Futures Association (“NFA”) is a self-regulatory organization for the futures industry in the United States. The NFA promulgates and enforces rules to help regulate the tens of millions of futures contracts traded every day, which include commodities, precious metals, equities, foreign currencies, equities, and financial indexes. The NFA regulates more than 4,200 firms and 55,000 associates who conduct business on the U.S. futures exchanges.
Like FINRA, the NFA sponsors an arbitration and mediation program to facilitate the resolution of disputes involving investors/traders and NFA member firms, their employees, and associates. In addition to representing investors in FINRA arbitration or AAA arbitration, the Firm represents investors and traders with commodities, futures, or other investment-related disputes in NFA arbitration.
Securities Litigation Attorney
In addition to its securities arbitration practice, the Firm represents both individual and institutional investors in securities and commodities litigation matters in both State and Federal court. The Firm represents investors individually, in group actions, and in class action lawsuits. In securities litigation matters, investors pursue violations of State securities laws (known as Blue Sky laws) or Federal securities laws and may allege claims such as negligence, misrepresentations, breach of fiduciary duty, common law fraud or securities fraud.