What is Selling Away?
When a broker sells a security that is not offered by the broker-dealer he or she is registered through it is called Selling Away. According to FINRA Rule 3280, brokers must only sell securities through the broker-dealer that he or she is registered through.
Broker-Dealers are required to research every security it offers to ensure that it is a sound investment and that it is suitable for the firm’s client base. This is required to enable broker-dealers to maintain control of the products offered by their representatives and to properly supervise what products are being recommended to the firm’s clients. Broker-Dealers are required to supervise their brokers and can be held responsible for investor losses as a result of their failure to supervise when brokers engage in Selling Away.
If you have suffered investment losses, then Galvin Legal may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim. For a Free Consultation with a securities attorney, call Galvin Legal at 1-800-405-5117.