A breach of contract claim can be established against a financial professional or firm if there was an existence of a valid contract, a breach of that Failure to supervise is a claim against the employer of a financial professional. The misconduct of an individual financial professional can often be prevented if an employer has implemented a reasonable system of supervision to oversee the conduct of its employees. FINRA and the SEC in fact require financial institutions to employ such mechanisms to ensure compliance with securities laws and regulations. A brokerage firm should thus have updated policies, practices, and advanced software capable of detecting anomalies, red flags, and suspicious transactions within a customer account. Thus, while the individual financial professionals you work with are liable for their own fraud or negligence, the financial institutions they work for can also be held liable for not ensuring adequate supervision.