Unauthorized Trading

Unauthorized trading involves any trades that a financial advisor makes for a client without obtaining their express permission. If a financial advisor executes a transaction without the permission of his/her client, the advisor has violated FINRA rules and possibly state and federal laws that prohibit unauthorized trading. Whether an advisor has permission to execute trades on behalf of a client without express permission for each transaction depends on the agreement between the advisor and the client. Clients with discretionary accounts have given their advisor a limited power of attorney that permits such activity. Non-discretionary accounts usually require consent from the client before each transaction. If your financial advisor has traded in your account without your express permission, you may have a may have a viable claim for unauthorized trading. Contact us today!