Is your Financial Advisor Churning your Account?
Like any profession – there are good financial advisors and there are bad ones. As long as financial advisors are compensated by commissions, some of the unscrupulous ones will continue to attempt to enrich themselves by excessively trading accounts.
Churning is excessive trading by a broker in a client’s account largely to generate commissions. Churning claims arise out of the inherent conflict of interest involved when a financial advisor is compensated by commissions earned in buying and selling securities on behalf of a client.
In order to prove a Churning Claim you need the following information:
1. Did the client give the broker control of the account?
2. Is the broker excessively trading the account?
3. Is the broker excessively trading the account in order to gain commissions?
If you are the victim of churning, a FINRA arbitration claim against the financial advisor or the financial advisor’s employer is often the best way to recover the damages incurred as a result of the broker’s excessive trading.
For a free consultation with a securities attorney please call 888-637-5510.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information please visit our website at http://www.churningattorney.com .
