Donald M. Thompson - Securities Arbitration - Claims Against Securities Brokers and Investment Advisers
SECURITIES ARBITRATION -
CLAIMS AGAINST SECURITIES BROKERS
AND INVESTMENT ADVISERS
Clearing Broker Liability

Not all brokerage firms can pay an award against them. Many of the firms that cannot pay an award also do not do their own trading or maintenance of customer records. They do these things through a larger firm called a clearing firm. When the clearing firm knows or should have known of illegal conduct by the brokerage firm dealing with the customer and continues to clear the transactions, the clearing firm can be liable for the other firm's illegal activities.

 

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Donald M. Thompson * 55 W. Monroe #3950; Chicago, IL 60603
Ph: 312-782-0844 * Fax: 312-201-1436 * Email: donthompsonlaw@sbcglobal.net