If you are an investor and you’re having problems with your financial advisor or broker, or you believe you are a victim of fraud, then it might be time to hire a securities attorney.
Securities attorneys know the laws and industry rules in and out. They play a significant role for both individual investors and companies.
If you’ve lost money as a result of misconduct from your broker, you are entitled to seek compensation from the party involved. The best way to do that, and much more, is with the help of a securities lawyer. Here’s why you need one.
What Are Securities Laws?
Securities or Capital Markets law is the group of laws and regulations that regulate the securities industry. The Securities and Exchange Commission (SEC) is the agency that governs the securities industry and oversees the issuance of federal securities laws.
Securities laws are designed to protect investors, ordinary people, and large companies from fraud or other types of abuse to ensure that the industry runs fairly and lawfully.
What Does a Securities Attorney Do?
A securities law attorney specializes in the securities regulations that apply to all investors, brokers, and financial advisors. One of the most crucial benefits of hiring a securities lawyer is that they can advise you if a broker violates the legal obligations they owe you.
You’ll also require a securities lawyer to represent you during litigation if you choose to file a lawsuit against your broker. You can do this for a number of reasons, including:
- Breach of fiduciary duty
- Conflict of interest
- Omission of facts
- Risk-filled investments
- Trading without permission
What Types of Work Are Covered Under Security Law?
Transactional Advisory
Transactional advisory plays a major role for securities attorneys. They work with people from various industries to manage and execute high-profile transactions for large clients. Transaction advisory firms help the business by fetching more deals and assisting them with relevant skills and knowledge in the field to reduce risks.
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Regulatory Advisory
One of the main reasons people hire securities lawyers is to be aware of the laws and regulations that apply to them, like take over regulations and insider trading regulations, to name a few. Failure to follow some regulations could even result in a significant penalty.
Regulatory securities law means helping clients understand and comply with the various state and federal regulations that apply to their security offerings.
This is crucial for a business when it is offered to the public for investment. It needs to comply with regulatory filings and mandatory information disclosures.
Litigation
Lawyers that practice securities law act as litigators if a dispute arises when buying and selling securities. Many litigation trials end up in arbitration, so securities lawyers must also be skilled in arbitration. They prepare court filings and participate in the activities associated with litigation, including:
- Discovery
- Motion practice
- Trial
Compliance
Securities lawyers are tasked with compliance functions in many organizations for a myriad of tasks that include:
- Legal advice
- Monitoring
- Assurance of regulations
- Control and management of regulatory relationships
