Unauthorized Trading Target of SEC Risk Alert

Helping broker-dealers and investment advisers prevent and detect unauthorized trading in brokerage and advisory accounts is the subject of a new Securities and Exchange Commission risk alert.

According to the SEC, “unauthorized trading can include rogue trades in customer, client, or proprietary accounts or trades that exceed firm limits on position exposures, risk tolerances, and losses. Unauthorized trading can be done by traders, assistants on trading desks, portfolio managers, brokers, risk managers, or other personnel, including those in administrative positions in a firm’s back office.”

Red flags for unauthorized trading include changes in trading patterns, a high volume of trade cancellations or corrections, manual trade adjustments, or unexplained profits for a particular trader or client may warrant additional scrutiny.

Contact Fort Lauderdale securities attorney Howard N. Kahn, Esq., if you or someone you know has been the victim of unauthorized trading in regard to an investment or brokerage account. Mr. Kahn is an experienced securities attorney and FINRA arbitrator. You can him at 954-321-0176 or online.

Click on the link to read the SEC’s release on unauthorized trading.