Articles Posted in Fiduciary Duty

Once again, breach of fiduciary duty ranks as the most frequently alleged customer claim according to our mid-year review of securities arbitration cased filed with the Financial Industry Regulatory Authority (“FINRA”). Other commonly alleged claims include negligence and misrepresentation.

So far this year, customers have prevailed and been awarded damages in 48% of the cases that went to hearing. This is the highest win ratio reported by FINRA over last five years. The lowest ratio of winning cases occurred in 2007 when only 37% of arbitration cases received any sort of damage award at all. For more information about arbitration awards, see our analysis of San Francisco arbitration awards for the year 2009.

What is a Stockbroker’s Fiduciary Responsibility?