Breach of Third Party Contract

In certain situations, you may be a third-party beneficiary of the stockbroker’s contract with a regulator, such as FINRA.  In order for firms such as Morgan Stanley, Merrill Lynch, Raymond James, or Charles Schwab to be licensed with FINRA, those firms must agree to comply with FINRA’s rules and regulations.  You, the investor, may be the beneficiary of those rules and regulations.