PEB Securities

The newly appointed branch manager at a branch of PEB Securities was worried. He had just finished speaking to a sales assistant regarding a series of transactions made by him over the last few months. Earlier in the day, the branch manager had received a call from a client's lawyer regarding the mishandling of her account by the firm. As he sat down to review the file again, he wondered which of the transactions, if any, exposed the firm to legal liability and what his next course of action should be. The main pedagogical objectives of this case are to explore liability issues. Several transactions are presented; in each case, students must examine the legal as well as ethical issues and determine to what extent the individual or firm can be held liable.