If your broker solicits you to purchase securities away from the brokerage firm, your broker is "selling away," which is a violation of self-regulatory rules and federal securities laws. These transactions are known as "private securities transactions" and are subject to special rules and heightened supervision from the brokerage firms. Typically, these investments are in the form of private placements, or other non-public investments such as oil & gas drilling partnerships or other "private" investment opportunities. Even if the broker simply refers you to another investment, recommends the investment, but disclaims his or her role in the investment, or facilitates the investment in any manner, the broker and his firm may be liable for any losses associated with such investment.
To learn more about selling away, call us at 903-597-2221 or contact us online.