Series 65: Damages And Liabilities

Damages and Liabilities

In addition to whatever penalties the state administrator smacks on someone or asks prosecutors to pursue, the client or prospect that was injured by a violation can also sue to recover damages. This is most commonly done through a process known as binding arbitration, where an impartial panel hears both sides of a complaint and makes a decision that both parties are bound to. Such complaints and actions against brokers and advisers by their clients probably occur as often as actions initiated by the administrator. They may lead to additional action by administrators as well.

In the event that a client does bring suit in a court of law, and a judge or jury finds in their favor, a professional or firm can be required to pay damages that are e