What is “selling away?”

“Selling away” is when a financial advisor solicits a customer to participate in a private securities transaction that is not offered or approved by the brokerage firm where the financial advisor is employed or registered.

FINRA Rule 3280 states that stockbrokers that are registered with an investment firm cannot participate in any manner in a private securities transaction unless the broker provides written notice to the firm and the firm approves the proposed transaction.

The rule defines a “private securities transaction” as any securities transaction outside the regular course or scope of a financial advisor’s employment with a brokerage firm.

Why is “selling away” significant?

Broker-dealers are required to supervise financial advisors and customer accounts to ensure compliance with securities laws and industry regulations. These protections in place to protect investors. When a financial advisor recommends, or otherwise participates in, a security transaction that is “away” from the firm, supervision becomes more difficult. The result is that the investor is left with less protection.

Our Law Firm’s Investigation

Our law firm is investigating Mr. Jennings’ conduct on behalf of investors who may have suffered financial losses. If you or a loved one were a customer of Mr. Jennings and you suffered investment losses, contact New York securities arbitration attorney August Iorio of Iorio Law PLLC. August Iorio can be reached at info@iorio.law or toll-free at (646) 330-4624 for a free and confidential review of your legal rights.

About Iorio Law PLLC

Iorio Law PLLC is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have over 15 years of experience as securities arbitration lawyers and have helped investors recover investment losses in over 800 cases. The firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

This blog was published by August Iorio when he was a Partner at his previous firm and has been updated to reflect Iorio Law PLLC’s new contact information. To evaluate any potential claims, contact securities arbitration lawyer August Iorio for a free consultation contact Iorio Law PLLC at info@iorio.law or (646) 330-4624.