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FAQs LINKS
QUESTIONS AND ANSWERS ABOUT COMPLAINTS
Q: When should I file a complaint with the Securities Division?
Q: What can the Securities Division do if I have a complaint?
Q: How do I file a complaint?
Q: What written information do I include in my complaint to the Securities Division?
Q: What does the Securities Division do with my complaint?
Q: What can I do if I have a complaint against a securities salesperson, broker/dealer?
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Q: When should I file a complaint with the Securities Division?
A: You should make your complaint as soon as possible after the time of the transaction about which you are complaining. If you believe someone has offered or sold a security to you in violation of the Arizona Securities Act, or if you believe someone has violated the Arizona Investment Management Act in connection with offering or providing investment advice, please let us know. You may also have a right to go to court on your own to seek a private remedy—be sure to consult a lawyer about your claim at the same time you complain to the Division—the Securities Division does not represent individual investors and cannot directly recover money for you. Arizona law provides a very limited time within which you can sue on your own behalf.
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Q: What can the Securities Division do if I have a complaint?
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A: The Securities Division may bring administrative and civil actions against individuals or companies when it believes a violation of Arizona securities laws has occurred. The Division may also refer the matter to the Arizona Attorney General's office or the U.S. Attorney for criminal prosecution. Often, these actions result from investor complaints. The Division may require violators to face monetary fines, license/registration revocation, suspension or denial of licensure/applications, a requirement to make restitution, the appointment of a receiver, or an order to stop the illegal activity.
Keep in mind that the Securities Division cannot:
- Give you specific legal advice or refer you to a particular attorney or investment firm,
- Directly recover money for you.
Again, you may wish to employ a private attorney to assist you in the recovery of your investment.
Q: How do I file a complaint?
You can file a complaint with the Securities Division by U.S. mail, facsimile, or e-mail. To send by mail or facsimile, please fill out the Securities Division’s Investor Complaint Form (click here).
A:
- By Mail: Send the completed form, together with copies of supporting documents relating to your investment, to:
COMPLAINTS-SECURITIES DIVISION
ARIZONA CORPORATION COMMISSION
1300 W WASHINGTON ST, 3RD FLR
PHOENIX AZ 85007
- By Fax: You may also fax your completed complaint form and copies of supporting documents to the Securities Division at 602-594-7470.
- By E-mail: Go to the Securities Division’s Investor Complaint Form and fill it in, then click on the “File” menu at the top of the screen and select “Send.” Select “Page by e-mail.” A new e-mail message should appear on your screen. Send the complaint to the following e-mail address: securitiesdiv@azcc.gov
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Q: What does the Securities Division do with my complaint?
Your written complaint will go through several stages of evaluation and/or investigation. Your complaint, however, may be closed without any enforcement action if the underlying conduct of the person or company does not rise to the level warranting regulatory action or if the Division was unable to conclude that violation of Arizona securities laws occurred. Closure of a complaint may occur at a very early stage in our evaluation or after an extensive investigation. If the results of our investigation suggest violations, the matter is then referred to our enforcement section for further review and disposition. Disposition may include the Division takes no further action or it may include a regulatory enforcement action against the violators. Keep in mind that the Division is required by statute to conduct inquiries confidentially. This regulation protects the integrity of the investigation and may protect personal privacy if the charges are unfounded.
Keep in mind that the Securities Division cannot provide legal or financial advice to investors or represent them in connection with their personal rights. Any action the Division institutes with respect to alleged violations are limited to remedial and enforcement actions, seeking to prevent further violations. An action by the Division does not necessarily result in any monetary benefit to you.
The more information you provide, the more likely the Division will be able to promptly decide how and if it can help you. The following information is critical to investiate the subject of your complaint:
If you have suffered monetary loss, you should consider contacting a private securities attorney to discuss your legal rights and remedies under the Arizona Securities Act or other statutes. If you do not have a private attorney, you may wish to contact the County Bar Association’s Lawyer Referral Service or the local Legal Aid Society.
Upon receipt of your complaint we will file the complaint in the records of the Arizona Corporation Commission and will consider making an inquiry into the matter.
You should be aware that evaluation of your complaint might take several weeks. The Division's policy is to conduct inquiries on a confidential basis. This is done to protect the integrity of the investigation and to protect the personal privacy of persons with respect to whom unfounded charges may be made.
Remember that the Division does not have authority to provide legal or financial advice to investors, or to represent them in connection with their personal rights. Any actions instituted by the Division with respect to alleged or purported violations are limited to remedial and enforcement actions seeking to prevent further violations. Thus, any action by the Division would not necessarily result in any monetary benefit to you. If you have suffered monetary loss, you should consider contacting a private attorney to discuss your legal rights and remedies under the Arizona Securities Act or other statutes. If you do not have a private attorney, the County Bar Association's Lawyer Referral Service may be consulted or the local Legal Aid Society may be able to assist you.
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Q: What information should I include in my written complaint?
· Names, addresses, telephone numbers, and other identifying information for any person or entity you mention in your complaint.
· Details of any transaction or activity you think violates the Arizona Securities or Investment Management Acts. Present the events in the order in which they happened, using dates whenever possible.
· Copies of documents relating to the transaction that is the subject of your complaint.
· Signed declaration as to the truth and accuracy of your complaint.
Provide all of the information requested on the Securities Division’s Investor Complaint Form (click here). In addition, send in any of the following documents you may have, including all envelopes in which you received information relating to your investment:
• Letters
• Confirmations
• E-mail correspondence
• Pamphlets
• Offering circulars
• Prospectuses or written offering memoranda
• Purchase agreements
• Stock certificates
• Advertisements
• Money order receipts or cancelled checks (copies of front and back) by which you made payments
• Other written material that may support your complaint. Keep originals for your files.
IMPORTANT: If you e-mail your complaint, please be sure to include with the documents you mail a note indicating you have already submitted a complaint by e-mail.
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Q: What can I do if I have a complaint against a securities salesperson/broker-dealer?
A: Many disputes with securities dealers can be resolved directly if you:
Notify Your Salesperson, your Salesperson’s Manager, Broker-Dealer…
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- Talk to your salesperson about the problem.
- Negotiate directly with your salesperson to resolve the matter. You can often settle minor issues informally at this point.
- If you feel the salesperson has answered your questions unsatisfactorily or is unwilling to review your complaint, contact his or her supervisor, as well as the office manager.
- Write to the firm’s chief compliance officer. This individual is located at the firm’s home office address. Request a response in writing from the compliance officer. (You can get the name of the compliance officer and the firm’s home address from the salesperson’s office.)
- Document ALL communication
Note: In some cases, these recommendations also may be effective in resolving disputes with an investment adviser. Unless an investment adviser is a member of FINRA, the arbitration procedures discussed below may not be available. Smaller investment advisers also do not have the same kind of management structure as dealers, including office managers or compliance officers. If you are unsatisfied with the response of an investment adviser representative, speak to the investment adviser.
- Use Arbitration Procedures…
The United States Securities and Exchange Commission (SEC) has approved certain arbitration procedures for resolution of disputes between investors and their salespeople and dealers. Arbitration is a method of having a dispute between two or more parties resolved by an impartial person who is knowledgeable in the areas of controversy. That person is known as an arbitrator.
Disputes between an investor and a dealer often involve complicated issues that, in the interest of fairness, require a prompt and inexpensive means of resolution. Because of this, arbitration has long been used as an alternative to the courts. Once the arbitrator has made a decision, the decision is final and is subject to review by a court only on a very limited basis. Also, if arbitration is chosen as a means of resolving a dispute, the complaining party gives up the right to pursue the matter through the courts.
Based on the contract between you and your dealer, you may be required to submit the dispute to arbitration instead of going to court for litigation.
If you are interested in learning more about the arbitration process, you can contact the Financial Industry Regulatory Authority (FINRA) or the Exchange of which your salesperson and dealer are a member. The contact information for the NYSE and FINRA are:
NEW YORK STOCK EXCHANGE
WALL STREET
11 WALL STREET
NEW YORK NY 10006
TEL: 212-656-3000
http://www.nyse.com
FINANCIAL INDUSTRY REGULATORY AUTHORITY
33 WHITEHALL STREET
NEW YORK NY 10004
TEL: 212-480-4881
http://www.finra.org
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