California FINRA Attorney

If you are a financial advisor, broker, or another professional in the securities industry facing an employment dispute, the assistance of a California FINRA attorney can prove essential in the outcome of your case. Likewise, if you are involved in a pre-existing industry dispute, the attorneys at Rosenberger + Kawabata are ready and able to assist or consult on your case. If you are an employer or an employee facing FINRA arbitration, our attorneys can help you.

Investing can be an elaborate task with potential risks involved. Many individuals enter this industry, however, for the great rewards that are also possible. Unfortunately, just like any other industry, there can be various legal actions taken and faced by both employers and employees and it is essential that, in these challenging situations, you have an attorney who understands the intricacies of the laws which surround employment in the California securities industry.

With years of experience at our backs, the attorneys at Rosenberger + Kawabata are ready to review the details of the claim you are filing or the claim that has been filed against you and ultimately provide you with legal representation for these complex issues.

What Is FINRA and Is Litigation Necessary?

In the United States, FINRA (Financial Industry Regulatory Authority) is a regulatory agency that protects investor’s rights and ensures that brokers and their firms act with integrity. Its main goal is to make sure that the country’s financial markets are running smoothly and fairly. Some of their main duties are to educate investors, ensure that registered brokers and broker-dealers are following ethical guidelines in their practices, and ensure that these guidelines are enforced.

FINRA can be involved in cases that arise due to disputes between a broker and their firm or employer. In some cases, these issues can threaten the livelihood of a broker, impacting their current compensation amounts and their reputation. In these cases, the need for a strong legal defense, and one which is willing to take their case to trial if necessary, is of paramount importance.

Often, litigation is not necessary in these cases as many can be settled through negotiations. The team at Rosenberger + Kawabata will work to pursue cost-effective solutions such as arbitration for financial advisors over more expensive scenarios of courtroom litigation. However, in some cases, the only way that your rights and reputation can be protected is to pursue litigation. If so, it is vital that you have us on your team.

With our experience and knowledge regarding both California employment law, securities industry law, and the legalities of FINRA, we can offer you the greatest chance at a successful and desired outcome.

Rosenberger + Kawabata: Legal Representation for Financial Advisers and Brokerage Firms

We provide comprehensive legal services to financial advisers and brokerage firms. Our firm is skilled in addressing the unique complexities of the financial industry, offering tailored solutions for disputes, compliance, and regulatory matters. If you are a broker or financial advisor facing an employment dispute involving a current or former employer, it is quite likely that your case will need to face arbitration through FINRA’s dispute resolution system.
Litigation, FINRA Arbitrations, and Employment Disputes

The intricacies of litigation, FINRA arbitrations, and employment disputes require experienced guidance. Our knowledgeable attorneys stand ready to assist with:

• Unfair Competition and Non-Compete Agreements (Restrictive Covenants): In some cases of securities industry employment, brokers will have to enter into employment agreements which will keep them from working with former clients if they leave their current brokerage or firm. This is typically done in order to keep brokers from taking confidential information to a new employer regarding clients.

  However, a restrictive covenant can prevent brokers from being able to work or get new employment altogether in this industry. When a restrictive covenant, or non-compete agreement is deemed unreasonable and keeps you from finding new and gainful employment, you should contact an attorney who can intervene on your behalf and keep your interests in mind while protecting your employee rights.

• Raiding and Pirating Cases: Cases involving raiding claims involve a broker being recruited from one firm to another. In these situations, the firm that has lost the advisor may file a claim against the acquiring firm or brokerage. If an advisor feels as though they are caught in the middle, they may require their own representation to ensure that their legal rights and interests are protected under the law.

• Promissory Note and Forgivable Loans (Sign-On Bonuses and Others): When an upfront payment has been received by a financial advisor or broker, a promissory note is usually the result of this. These notes can become an issue if the brokers are required to pay the remaining balance of said note, especially in cases when they are about to leave their brokerage firm.

• These notes are usually used by firms as a recruiting tool, but the employee may find themselves facing a lawsuit if they leave before the balance is paid off in full.

• Wrongful Termination Claims: Typically, financial advisors are hired as “at-will” employees, meaning they can face being fired at any time for any reason or no reason at all unless the stated reasons are deemed illegal or inaccurate. This can raise a claim for wrongful termination. The most common illegal reasons leading to wrongful termination cases can include the following:
  • Discrimination based on gender, race, disability, age, sexual orientation, skin color, gender identity, or country of origin
  • Harassment, such as physical or sexual
  • Retaliation
  • Whistleblowing
  • Breach of contract

• Discrimination & Harassment: If you have faced any form of discrimination or harassment at your securities industry place of work, including that based on gender, race, or disability, this is illegal, and you may have grounds on which to file an employment law claim.

• Claims Involving Statutory Discrimination and Whistleblowing: If you are a broker-dealer who has been terminated from your employment because you reported a compliance violation or were terminated in order to prevent you from doing such, it can be grounds to file a claim against your employer for retaliation or a whistleblower claim

• Defamation Claims: Defamation is the term that refers to any intentionally false communication, oral or written, which seeks to harm an individual’s reputation. In the context of securities arbitration, defamation can include any inaccurate marks on the U-4/U-5 of an advisor.

If, as an employee in the securities industry, you have faced any of these kinds of employee violations, you have the right to seek arbitration under FINRA. The attorneys at Rosenberger + Kawabata can help.

Compliance and Regulatory Matters

The regulatory landscape of the financial industry is in constant flux. Staying compliant is vital, but can be a complex task. We offer reliable guidance and representation in areas such as:

• Regulation Best Interest (Reg BI)
• Expungement of Wrongful U-4/U-5/U-6 Statements
• SEC Subpoenas & Regulatory Investigations
• FINRA 8210 Requests, Investigations & Hearings
• Wells Notice Responses
• State Regulatory Investigations & Disciplinary Hearings
• Audits & Regulatory Investigations
• Governmental, Regulatory and Self-Regulatory Proceedings
• Dodd-Frank Whistleblower Protections
• Drafting & Negotiation of Employment Agreements, Handbooks & Policies
• Cooperation in Criminal, Civil, and Regulatory Matters

We can help you navigate through regulatory scrutiny, maintain compliance, and manage potential risks, helping you operate your business within the confines of the law.

Who Can Be Involved in a Securities Industry Employment Dispute?

Because many employment contracts in the securities industry are extremely extensive and in-depth, almost every individual employed at a brokerage or by an advisory firm can be dragged into a dispute with their employer. Advisors or brokers most often face these disputes when transitioning from one firm to another. However, nearly any employee of a securities firm, such as partners, analysts, executives, and traders, can face disputes regarding rules or compensation.

How the FINRA Arbitration Process Works

Arbitration is a completely different process from litigation in which a panel of arbitration will decide the outcome of a case. In most instances, the process of FINRA arbitration will follow these steps:

• Filing a statement of claim by your FINRA arbitrator lawyer
• A selection of arbitrators will be made
• A pre-conference hearing will take place in which all parties will discuss their timelines for discovery
• Submitting the discovery will happen, which will include the exchange of documents regarding the case
• The final hearing will allow all parties to discuss the issues in the case, and the arbitrator will then make their decision regarding the case

What to Do If You Think Your Advisory Firm or Brokerage Is Setting You Up

It is common for brokers and other employees in the securities industry to ignore signs that they are in a bad relationship with their employer. As soon as you begin to experience strange questions or interactions with your manager, compliance professional, or supervisor, you should contact the attorneys at Rosenberger + Kawabata. Sometimes, an investor may be dissatisfied with the work of a firm, and your firm could try to take the blame to your doorstep.

Most securities industry firms are mainly concerned with protecting themselves and not their employees. If your employer is facing a dispute with an investor, such as one regarding alleged broker misconduct or excessive trading, your employer could try to make you the scapegoat, no matter how long you have worked for them.

How Long Does FINRA Mediation Take?

As in almost all litigation proceedings, it can be challenging to predict and offer an exact timeline for how long it will take to resolve the particulars of your case. Because each case is different, there is no real way of offering an estimate before we can review the details of your case. However, the same factors will influence the time frame of almost every case. These factors include the cooperation of all parties involved and the complexity of the case.

Who Is Subject to FINRA?

The Financial Industry Regulatory Authority, or FINRA, regulates all employees and employers within the securities or investment industry. This can include broker-dealers, brokerage firms, advisory firms, investment advisors, or individuals who are seeking to make investments.

How Much Can a FINRA Attorney Charge?

It can be difficult to offer an exact number as to how much a FINRA attorney might charge in the state of California. This is due to the fact that these are extremely complicated cases and each attorney will approach the case in a different manner. However, there are several factors which will impact the cost across all cases. These factors can include the duration of the case, the complexity of the case, and the attorney’s own skill level, experience, and knowledge.

Count On Us

Our experienced lawyers offer an extensive knowledge base and exceptional client service. We are advocates, negotiators, and strategic advisors with a comprehensive understanding of the financial industry. Our firm is uniquely positioned to provide effective legal solutions custom-fit to your needs.

If you are facing any kind of FINRA arbitration or are looking for assistance or counsel on a pre-existing industry dispute, the attorneys at Rosenberger + Kawabata can help. Partner with us and let our knowledge be your strength. Contact us today for a consultation.