Unregistered Stockbrokers and Unregistered Sales Assistants
By law, stockbrokers and certain sales assistants must be registered with FINRA and with state regulators. If they fail to meet this requirement, you may have the right to rescind a purchase or sale. Sales assistants, by the nature of their position, are often not registered. This means, effectively, that they are very limited in what they are permitted to do. If a sales assistant is poorly supervised, that person may “cross the line”, and perform tasks that only a registered person is permitted to perform. In such situations, a brokerage firm may by law be required, at an investor’s request, to reverse a purchase or sale.