Selling away occurs when a broker solicits a client to purchase securities not held or offered by the brokerage firm. Brokerage firms generally have lists of approved products that can be offered by their brokers to clients of the firm. These approved products have usually undergone due diligence screenings and have been identified by the firm’s screening personnel as solid products. When a broker sells away from the firm’s list of approved products, they run the risk of selling something for which due diligence has not been completed. Such activities can be a violation of securities regulations.
Godbout Law’s attorneys handle securities litigation and arbitration matters throughout Massachusetts, for individuals, creditors and small businesses.
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