Series 63: 3.3.3.1. Damages And Liabilities

3.3.3.1. Damages and Liabilities

In addition to whatever penalties the state administrator smacks on someone or asks prosecutors to pursue, the client or prospect that was injured by a violation can also sue to recover damages. In fact, lawsuits against brokers and advisers by their clients probably occur as often as actions initiated by the administrator.

In the event that a client does bring suit and a judge or jury finds in his favor, a professional or firm can be required to pay damages that are equal to one or more of the following, minus any income earned on the investments in question:

• Fees and commissions previously paid

• Amount paid for the security

• Amount paid for investment advice