New York Securities Fraud Lawyers Blog
On Wednesday, April 17, 2024, Malecki Law’s Jenice L. Malecki, Esq., will participate in a virtual panel organized by the New York State Bar Association (NYSBA). This is a joint effort by the NYSBA’s Commercial and Federal Litigation Section’s Securities Arbitration Committee and the Dispute Resolution Sections’ Securities Disputes Committee. Ms. Malecki will speak alongside her colleagues in the industry, Howard Fischer, and Joe Wojciechowski. If you incurred investment losses due to crypto-based products, you need to consult with a Crypto-Based Investment attorney in New York, like the lawyers at Malecki law.
The panel is called “The Current State of Crypto Cases: What Theories Are Being Developed to Support claims Relating to Crypto Losses?” It will begin at 12:00 p.m. EST and end at 1:00 p.m. EST. The panel will focus on liability related to crypto recommendations and broker-dealers. It is free to attend, please click here to register.
Ms. Malecki is looking forward to discussing her first-hand experiences with broker-dealer liability as it relates to crypto-based investment recommendations. Malecki Law has recently settled with a large crypto-based broker-dealer, where Ms. Malecki had the opportunity to learn more about broker-dealer liability in the context of crypto losses. Further, Ms. Malecki enjoys speaking on panels and sharing information with other lawyers in the industry, in an effort to protect investors like yourself. Did your broker recommend that you invest in crypto-based investments? Were those investment recommendations in your best interest? You should reach out to a Crypto-Based Investment law firm, like Malecki Law in New York.
As crypto-based investments have been on a rise in recent years, and because Regulation Best Interest (Reg BI) was officially implemented in June 2020, the inquiry into whether crypto-based investment recommendations are in the best interest of a specific investor is key. This inquiry is especially important in FINRA arbitration claims, as Reg BI has established a more heightened standard as compared to the suitability standard, its predecessor.
The four pillars of Reg BI are the disclosure obligation, care obligation, conflict of interest obligation, and compliance obligation. Along with compliance with the Reg BI pillars, firms must make the Form CRS (client relationship summary) available to both current clients and prospective clients. In the Form CRS, firms must make public disclosures such as fees, conflicts of interests, and services they provided. Some crypto-based broker-dealers are special purpose firms that only sell their proprietary private placements tied to crypto, which should be disclosed and further explained in the Form CRS, as it can pose potential or actual conflicts of interest.
There are various ways broker-dealers can sell crypto-based investments, including crypto based ETFs, mutual funds that hold crypto, and/or private placements tied to crypto (as briefly mentioned above). Due to the various avenues to gaining exposure to crypto, traditional broker-dealers have begun to sell such products, which in turn exposes everyday retail investors to such products. If your advisor made investment recommendations to purchase crypto-based securities, and you suffered substantial losses, you should have a Crypto-Based Investment lawyer, like the lawyers at Malecki Law in New York, review your portfolio.
You still have time to register for the panel, please click here to register. The event is held by the NYSBA, will take place virtually, and attendance is free to NYSBA members as well as non-members. Are you invested in crypto-based investments due to your brokers recommendations? Are you unsure whether these investment recommendations were in your best interest? You need a Crypto-Based Investment law firm in New York, like Malecki Law to evaluate your situation to determine whether you have a potential FINRA claim.