KlaymanToskesScott Norvell of Brokers International: FINRA Investigation
Summary
FINRA’s investigation found that Norvell negligently misrepresented facts to customers about the death benefits of variable annuity exchanges. Further, Norvell allegedly violated FINRA Rules 2010 and 4511 in that he falsified customer signatures on account documents and caused his member firm’s books and records to be inaccurate. FINRA (Financial Industry Regulatory Authority) is the self-regulatory body responsible for regulating all U.S. brokers and brokerage firms doing business with customers in the United States and/or other countries. Under FINRA rules, financial advisors and their firms are responsible for providing suitable investment advice and may also be liable for a breach of fiduciary duty in the event of a misrepresentation, omission or unsuitable recommendation resulting in losses suffered by the investor. Investors that have suffered losses as a result of their advisor’s violations of securities rules may hold their brokerage firm and financial professional liable through a FINRA arbitration claim.