Each state has its own securities laws. The following are selected sections of the Ohio securities laws that are generally applicable in FINRA arbitrations.
1301:6-3-19 Deceptive practices and good business repute.
(A) No dealer or salesperson shall:
(1) Engage in any pattern of unreasonable or unjustified delay in the delivery of securities sold;
(2) Induce trading in a customer’s account which is excessive in size or frequency in view of the financial resources of the customer or character of the account;
(3) Execute a transaction on behalf of a customer without authority to do so;
(4) Exercise any discretionary authority in selling, pledging, hypothecating or purchasing securities for a customer without first obtaining a manually signed, written authorization from the customer, unless the discretionary authority relates solely to the time or price for execution of orders;
(5) Sell, purchase, or recommend the sale or purchase of any security without reasonable grounds to believe that the transaction or recommendation is suitable for the customer, based upon reasonable inquiry concerning the customer’s investment objectives, financial situation and needs, and any other relevant information known to dealer or salesperson;
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.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.