Each state has its own securities laws. The following are selected sections of the Connecticut securities laws that are generally applicable in FINRA arbitrations.
Sec. 36b-31-15a. Dishonest or unethical business practices by broker-dealers
(a) In implementing section 36b-15(a)(2)(H) of the general statutes, the following shall be deemed “dishonest or unethical practices in the securities . . . business” by broker-dealers without limiting those terms to the following practices:
(2) Recommending to a customer the purchase, sale or exchange of any security without reasonable grounds for believing that the recommendation is suitable for such customer based on the facts, if any, disclosed by the customer after reasonable inquiry as to the customer’s other securities holdings and as to the customer’s financial situation and needs;
(4) Causing or inducing trading in a customer’s account which is excessive in size or frequency in view of the customer’s financial situation and needs as disclosed by the customer;
If you have questions about a state securities law, The White Law Group may be able to help. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida. With over 30 years of securities law experience, including experience working at FINRA (f/k/a the NASD) and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions.
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