Securities law deals with the regulations that apply to financial instruments like stocks, bonds, and mutual funds. In addition to preventing violations like insider trading, fraud, and market manipulation, these laws also promote greater transparency through a system of reporting and enforcement.
Within the financial planning field, there are plenty of rules and regulations of which financial advisors need to be aware in order to avoid legal issues. While most financial planning lawsuits arise from losses caused by flawed financial advising, there are a number of instances in which a financial professional may be vulnerable to a lawsuit. While every financial advisor knows the duty of care they owe to their clients to work towards their best interests, it is also important for them to be familiar with other kinds rules violations that could result in litigation.