Qudsia Shafiq Returns to the Investor Advocacy Clinic

Now a third year law student, Qudsia Shafiq decided to return to the Investor Advocacy Clinic to continue her cutting-edge investor education work on robo-advisers and to provide legal advice to real investors who have been wronged by their broker. According to Shafiq,

“I returned to the clinic because it provides me a vast array of opportunities I would not be able to experience in any other single class or internship.  I get to learn about securities regulation, securities products, emergent technologies, policy changes in the industry from a regulatory and business perspective – all while helping people!  It’s the perfect marriage of my interests in business, finance, consumer protection, and law.”

Upon graduation in spring 2018, Shafiq plans to practice in the securities arena.

IAC Welcomes Eric Peters

Eric Peters joined the Investor Advocacy Clinic “to be as practice-ready as possible when I graduate law school.”  A graduate of the University of Georgia with a double major in finance and real estate, Peters plans to “use the financial and legal knowledge I gained from both my undergraduate and GSU Law experiences to find his passion in the law.

According to Peters, the Investor Advocacy Clinic

“provides a valuable, cost-free alternative to investors who have been wronged but cannot afford adequate legal representation.  The clinic also serves to help investors navigate their way through financial information by creating educational material.  Knowledge is half the battle when seeing to prevent investor harm, and education is a great way to further develop their financial literacy.”

Alumni, Judges Facilitate Professionalism Sessions During Orientation

Each fall, the State Bar of Georgia’s Professionalism Committee and the Chief Justice’s Commission on Professionalism, host a professionalism orientation for incoming students at all six law schools in Georgia to discuss the personally and professionally challenging nature of professionalism issues, which they may face in school and as practicing attorneys. Nicole G. Iannarone, assistant clinical professor and chair of the Professionalism Committee, helped organize this year’s programs including the one at Georgia State Law.

“We are hoping to foster even greater collaboration between the bar and the law schools, to ensure we underscore the professionalism ideals they hope to foster in their students,” Iannarone said.

For Georgia State Law’s program, professors and deans recruited 17 judges and 36 members of the bar, many of which are Georgia State Law alumni, to facilitate interactive discussions based on hypothetical situations and cases that have occurred in law schools or in the practice of law. Continue reading

Fall 2017 IAC Interns Begin Work

The Investor Advocacy Clinic is back for another academic year.  Our fall 2017 student interns began their work on August 11, 2017 with a full day orientation and boot camp.  Two of our interns are returning from prior semesters, Robert Noens and Qudsia Shafiq.  Lynn McKeel, Eric Peters, Alisa Radut, and Abigail Warren join the clinic for their first semester.

IAC students learned about the clinic and its work with regular, retail investors during the orientation.  They developed relationships with their colleagues in the Tax Clinic and joined together to discuss best practices in client interviewing.  With multiple active matters to kick off the semester, from investigating whether a claim exists to preparing interactive investor education, the interns are ready to jump in head first to the clinic’s work.

Investor Advocacy Clinic, Secretary of State Office Develop Valuable Resources About Robo-Advisers

Through its partnership with the Securities Division of the Office of the Secretary of State, Georgia State Law’s Investor Advocacy Clinic (IAC) enhanced investor education with students tackling a cutting-edge technology issue that impacts the security industry – robo-advisers – and creating a resource library.

The securities division partnered with the North American Securities Administrators Association (NASAA) to learn more about these tools, and the clinic played a critical role in evaluating the pros and cons of robo-advising. Under the direction of Nicole G. Iannarone, assistant clinical professor and clinic director, students compiled and analyzed information relating to robo-advisers, which are investment management programs that select and manage individual portfolios.

Robo-advisers, previously called “internet advisers,” have changed significantly since they were introduced approximately 15 years ago. The products have gained in popularity in recent years, but there is relatively little educational and impartial information available. The algorithm-driven digital tools provide investment advisory services to consumers, often without any human interaction.

“Several legal questions arise as potential investors, financial advisers and regulators learn how to navigate this shift in financial investing through robo-advisers. Since the human interaction is diminished, the duties held by the investor and adviser are not as clear,” said Noula Zaharis, director of the Securities & Charities Division. “Legal questions, specifically about fiduciary duty, will continue to arise as robo-advisers become more prevalent.”

Qudsia Shafiq (J.D. ’18) and Majda Muhic (J.D. ’17) worked with the securities division and handled investigatory matters.

“Through general research, Majda and I determined the different business models under which robo-advisers operate and how they function within the financial industry,” Shafiq said. “We also identified key players and looked for potentially problematic regulatory issues and any arguments proposing robo-advisers as fulfilling – or failing to fulfill – their fiduciary duty to their clients.”

Based on their research findings, Shafiq and Muhic co-wrote a series of 11 articles for the IAC blog to help consumers understand what robo-advisers are, explain the fiduciary duty robo-advisers owe their clients and highlight the benefits, downfalls and key considerations for using this type of financial product.

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Investor Advocacy Clinic Evaluating Potential Cases

LAW_IACHave you lost money because of possible stockbroker misconduct?  Are you unable to find a lawyer because your claims are too small?  Georgia State University College of Law’s Investor Advocacy Clinic may be able to help.  Call us at 404.413.9270.  We are conducting intake and evaluating cases now.

The Georgia State University College of Law’s Investor Advocacy Clinic provides legal services to small investors with claims against their broker-dealers who are not able to find legal representation due to the size of their claims. Law students, under the supervision of a faculty member who is a Georgia-licensed attorney, represent investors in handling disputes with their broker-dealers in FINRA proceedings.  You may be eligible for our services if you have a claim of $100,000 or less, have no major assets other than your home and vehicle, are a Georgia resident and have been unsuccessful in obtaining an attorney to represent you.

The clinic lacks the resources to accept every eligible case. A decision not to take your case is not a decision about the merits of your particular matter.

Investor Alert: Advance Fee Fraud

By Geoff Hafer, Spring 2017 Student Intern

The SEC receives thousands of complaints every year describing a scam known as “advance fee fraud.”  An investor will be asked to pay a fee up front before receiving any proceeds, money, stock or warrants.  This up-front fee is often described as a deposit, underwriting fee, processing fee, administrative fee, commission, regulatory fee or tax, or sometimes an incidental expense that will be paid back later.  Unfortunately, in cases of advance fee fraud, once they have your money you can bet you will never hear from them again.

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