Selling away is when a broker sells investments or securities that aren’t authorized by the firm they work for.
It’s illegal, and it almost always means you have no recourse through that firm if the investment goes wrong. The securities industry is one of the most regulated precisely because of how much damage broker misconduct can do. Various securities regulations protect investors by imposing requirements on securities transactions and the people who facilitate them.
Individual brokers, broker-dealers, and financial advisors must be registered and licensed with the Financial Industry Regulatory Authority (FINRA) before they can conduct securities transactions. FINRA licenses registered representatives and administers exams that certify them to sell specific types of investment products.
All of these regulations exist to protect investors from fraudulent conduct by brokers. Nevertheless, brokers occasionally attempt to skirt the rules and offer private deals to their clients. These transactions violate FINRA rules and also pose additional risks for investors.
If you suspect you’ve been a victim of selling away, contact a selling away attorney at once.
¿Qué es la venta?
Selling away occurs when a registered person sells securities outside the regular course of their firm’s business, away from the firm’s oversight and approval process. These are typically non-public investments that the broker-dealer has never reviewed or approved.
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Brokerage firms maintain a list of approved securities that their brokers are allowed to offer. Before a broker-dealer approves any investment products for sale, the firm runs those products through its supervisory and compliance procedures.
Brokerage firms make sure that their brokers sell only securities that are vetted and verified as legitimate products. Skipping that process means you’re putting money into unapproved investments with no institutional due diligence behind them.
Los corredores venden cuando ofrecen a sus clientes valores que no figuran en la lista de productos aprobados de la empresa.
The most common driver for this is a broker’s desire for extra compensation outside the firm. Outside business activities like these let a broker pocket the full commission.
But not every selling-away case involves a broker trying to steal from you. Sometimes a broker genuinely believes in an investment but can’t offer it through their firm’s approved channels, so they go around the system. Good intentions don’t make it legal, and they don’t protect you if the investment fails. Regardless of the broker’s intent, however, FINRA prohibits selling away and sanctions brokers for doing so.
How Can You Tell If a Broker Is Selling Away?
You can tell a broker is selling away when the “investment” does not show up on your official brokerage statements or trade confirmations. That’s because they offered it outside the firm’s approved, supervised platform. Red flags include checks or wires to an individual, LLC, or “escrow,” a private placement subscription packet or promissory note delivered by email, and pressure to keep the deal “off the books.”
When your broker makes a legitimate recommendation, you get a trade confirmation, it shows up on your monthly statement, and the firm’s compliance team reviews it. Selling away skips all of that, which is exactly what makes it so dangerous. In legal terms, the broker is the associated person, the product is the unapproved security, and the firm is the supervisor that may have missed or ignored the warning signs.
If you suspect selling away, message or contact the firm’s compliance department in writing and ask whether the product is authorized and whether the broker disclosed the proposed transaction as required. Brokers are supposed to give prompt written notice and obtain prior notice approval before engaging in any private securities transaction. If they skipped that step, that’s a violation of securities regulations.
Even if you have a self-directed account, your broker still has obligations to you. Preserve everything, including the messages, offering materials, wire instructions, and bank records, so you have proof.
Ejemplos comunes de venta fuera de casa
While there is no specific form that a selling-away transaction takes, they frequently involve certain types of investments. These investments include:
- Colocaciones privadas de valores no registrados;
- Acuerdos privados que implican pagarés; y
- Los negocios inmobiliarios se realizan en privado y lejos de los negocios regulares del corredor.
Las operaciones que implican la venta a distancia suelen mostrar las mismas señales de alarma que otros tipos de fraude de inversión, como los esquemas Ponzi. Los rendimientos excesivamente altos o constantes son indicadores de que la operación es probablemente demasiado buena para ser cierta.
¿Cuáles son los riesgos de invertir en valores que se venden fuera?
Selling away deals often involves risky investments that expose investors to losses with no safety net. If there are no compliance procedures in place, there’s no check on whether the investment is legitimate or suitable for you.
La falta de selección...
First, selling-away deals involve securities that are not screened by the brokerage firm. Brokerage firms screen the products they offer for a reason. This is to make sure that their customers have access to solid investments. Without these safeguards, investors are taking on significantly higher risk.
Falta de divulgación
En segundo lugar, las operaciones de venta rara vez incluyen las declaraciones formales de riesgo que se encuentran en los productos de corretaje aprobados. No hay un examen de la inversión por parte del departamento de cumplimiento de la empresa de corretaje, y la naturaleza exacta del riesgo implicado puede no estar clara.
Menos responsabilidad
Finalmente, puede ser más difícil recuperar las pérdidas. Cuando un corredor de bolsa se compromete en una transacción aprobada, el corredor asume la responsabilidad de la actividad del mismo. Dado que los corredores a menudo desconocen por completo las transacciones de venta, es mucho más difícil demostrar la responsabilidad de la empresa de corretaje. En el caso de pérdidas importantes de los inversores, esto puede significar menos dinero recuperado en general.
Reglamento de la FINRA sobre la venta de bienes inmuebles
Hay dos regulaciones principales de la FINRA que cubren la venta: La regla 3270 y la regla 3280.
FINRA Rule 3270 prohibits brokers from engaging in outside business activities outside of their relationship with their firm unless they give written notice first.
FINRA Rule 3280 is similar and prohibits brokers from engaging in private securities transactions (including selling away) without first providing written notice to their firm. After receiving that notice, the member firm may approve or disapprove the transaction. If the firm approves, then the firm supervises and records the transaction. Disapproval, on the other hand, prohibits the broker from participation in the transaction either directly or indirectly.
These rules exist to prevent selling away before it can harm investors. When brokers bypass them, they’re in violation of securities regulations, and the consequences reflect that.
¿Cuáles son las penalidades por vender?
Both brokers and brokerage firms can be held liable when a broker sells away. FINRA regulations require brokers to offer securities products suitable for each of their clients’ needs. Brokers must account for their clients’ objectives, level of investing sophistication, and risk tolerances.
When a broker fails to fulfill this obligation, FINRA may sanction, suspend, or bar the broker from the financial industry. According to FINRA’s Sanctions Guidelines, Brokers who engage in selling away open themselves up to monetary sanctions. For serious violations, FINRA may suspend the broker for up to two years or permanently bar them from practicing as a broker.
The severity of the penalty depends on several factors:
- Si la venta involucró a clientes de la firma del corredor;
- Cómo se relaciona directamente la venta con el daño causado a los inversores;
- Cuánto tiempo duró la actividad exterior;
- La cantidad de dinero involucrada en las ventas;
- Si el corredor engañó a su empresa o a sus clientes con respecto a las transacciones.
- La importancia del intermediario para facilitar la transacción.
Repeat offenders face the steeper end of those penalties. FINRA’s review of a broker’s conduct also factors in whether they misled their firm, how long the outside business activity went on, and how much investor money was at risk. These cases often result in disciplinary actions that follow a broker permanently.
Dado que la venta implica transacciones fuera de la relación de un corredor con su empresa de corretaje, es más difícil hacer responsable a la empresa de las pérdidas de los inversores. No obstante, una empresa de corretaje puede seguir siendo responsable de la conducta de sus corredores en virtud de los reglamentos de la FINRA. Las empresas de corretaje tienen la obligación de supervisar a los corredores con los que están asociadas. El incumplimiento de esta obligación puede dar lugar a la responsabilidad de la empresa ante el inversor.
¿Cómo recupero las pérdidas de las ventas a distancia?
Investors can pursue recovery through several formal and informal channels, but there’s no guarantee of a specific outcome. Every case turns on its own facts, and the right path forward depends on details like how the investment was sold, what the broker represented, and whether the firm had any knowledge of the activity.
If you need to recover losses, speak with a selling away lawyer to understand what options are available for your case.
Arbitraje FINRA
Many brokerage firms require their customers to sign mandatory arbitration clauses. If this is the case, then the investor must use FINRA’s arbitration process rather than filing a lawsuit.
Arbitration starts when the investor files a claim. From there, the parties go through similar procedures to those in the regular court system. Each side will engage in discovery and present its case at a hearing before an arbitrator. The arbitrator is responsible for reviewing the evidence and ultimately issuing a decision and award.
Contactar con su empresa de corretaje
El departamento de cumplimiento de una firma de corretaje puede estar interesado en llegar a una resolución sin involucrar a los tribunales. En algunos casos, los inversores recuperan las pérdidas de las operaciones de venta de su corredor a través de la mediación. La FINRA proporciona acceso a la mediación informal para facilitar un acuerdo mutuamente aceptable entre el inversor y el corredor o la empresa.
Presentar una demanda
Si no hay una cláusula de arbitraje obligatorio y la mediación no tiene éxito, el inversor puede presentar una demanda. Como en todas las demandas, esto puede ser costoso y, dependiendo de la cantidad de pérdidas sufridas por el inversor, puede no ser la mejor opción. Un abogado especializado en fraudes de inversión puede revisar su caso y asesorarlo sobre la mejor manera de proceder.
Lectura relacionada: ¿Se puede demandar a una agencia de valores por pérdidas en inversiones?
Why You Need a Securities Fraud Attorney in Selling Away Cases
Independientemente del método de recuperación que elija, debe contratar a un abogado especializado en derecho bursátil con experiencia en recuperar dinero de inversores para que le represente. Un abogado especializado en fraudes de valores puede asesorarle sobre la mejor manera de recuperar sus pérdidas de una empresa de corretaje.
This is especially true because many selling away cases involve several different legal claims at the same time. A securities fraud attorney can attempt to reach a settlement with the brokerage firm and, if necessary, help you with the FINRA arbitration process.
¿Experimentó pérdidas por un acuerdo de venta?
If you have suffered investment losses due to your broker’s negligence or mistreatment, you should speak with a selling away attorney.
Las Oficinas Legales de Robert Wayne Pearce, P.A., se especializan en ayudar a los inversionistas a recuperar su dinero de malas inversiones. Tenemos más de 45 años de experiencia resolviendo todo tipo de disputas de inversión.
Póngase en contacto con nosotros hoy mismo para una consulta gratuita sobre su caso.
