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Arbitration Investment Adviser

Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties... more +
Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties to arbitration agree in advance to be bound by the arbitrator's decision. Arbitration is an alternative to litigation, but it shares many of the familiar features of litigation. Namely, parties to arbitration hold hearings before neutral decision-makers, present evidence and argue the merits of their position. Parties often choose arbitration due to its perceived advantages over litigation. Those perceived advantages include greater efficiency and flexibility, and lower costs. less -
Quarles & Brady LLP

Prevailing Against FINRA Investor Complaints

Quarles & Brady LLP on

In 2007, the United States Securities and Exchange Commission approved the creation of the Financial Industry Regulatory Authority (FINRA), and the FINRA arbitration forum officially came into being. ...more

Carlton Fields

Broker Obtains Preliminary Injunction Enjoining FINRA Arbitration Initiated by Non-Signatories to Arbitration Agreement

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Interactive Brokers LLC filed an action in the Southern District of New York seeking preliminary and permanent injunctions against an arbitration proceeding initiated by a group of non-signatories to an agreement between...more

Stikeman Elliott LLP

OBSI Joint Regulators Committee Releases Annual Report for 2022

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The Canadian Securities Administrators (“CSA”) and the Canadian Investment Regulatory Organization (“CIRO”) recently published the Annual Report (“Report”) of the Joint Regulators Committee (“JRC”) of the Ombudsman for...more

Bressler, Amery & Ross, P.C.

SEC Issues Report on Investment Advisor Arbitration: Is a Change Coming?

Originally published in American Bar Association. Current Status of Arbitrating Investor Claims - What an arbitration claim against an investor’s financial professional will look like varies significantly depending on...more

Davis Wright Tremaine LLP

Broker Dealer Regulatory Digest - August 2023

The following newsletter provides a roundup summarizing enforcement actions, guidance, rulemakings, and other public statements taken by a federal and/or state financial services regulatory agency, specifically focusing on:...more

UB Greensfelder LLP

Lack Of Diversity In FINRA Arbitration Panels, Or, How Many Old, White Guys Does It Take To Hear A Case?

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Let me say at the outset that I, myself, am an old (by most people’s definition, anyway), white man. So, selfishly, I’ve got nothing against old, white men. But, the fact is that FINRA arbitration panels are...more

UB Greensfelder LLP

Filing A Frivolous Customer Arbitration Carries Real Monetary Risks

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While the FINRA arbitration system certainly is not perfect – just see Alan’s troubling blog from last week regarding the Motion to Vacate that was granted by a Judge in Atlanta – we like to think that when cases go to...more

Jackson Lewis P.C.

Second Circuit: Investment Advisor Not Covered By Plaintiff’s Employment Arbitration Agreement

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The U.S. Court of Appeals for the Second Circuit recently concluded that investment advisor Ruane Cunniff & Goldfarb must face a proposed class action under ERISA Section 502(a)(2) for breach of fiduciary duty relating to its...more

Pullman & Comley, LLC

Broker Beware: As Volatile Market Customer Arbitrations Spike, Who is Looking Out for Your BrokerCheck® Reporting Record?

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As investors start to receive - and dare to open – recent account statements, the reality of the COVID-19 driven spring market volatility will come into focus.  Significant portfolio declines coupled with the financial stress...more

Fox Rothschild LLP

The Market Crashing = Litigation Explosion!

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Alas, the market crashes (nearly, 8% of its value today) and your 401k plan is devastated, but could it get worse? Of course, it could. Brokers and investment advisers as well as their employers should expect to see...more

Rumberger | Kirk

Minimizing Liability Under the SEC’s Reg-BI

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Litigation Risks Posed by the SEC’s Regulation Best Interest - Pete Tepley and Meredith Lees highlight litigation risks posed by the SEC’s Regulation Best Interest (Reg-BI), litigation risks that may arise from Reg-BI’s...more

UB Greensfelder LLP

TD Ameritrade Latest Victim Of Head-Scratching Arbitration Award

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I was catching up on my reading and came across a column in Investment News by Mark Schoeff that described the results of a recent FINRA arbitration, results which I found a bit alarming. I caution you: reading too much into...more

UB Greensfelder LLP

A Fish Out Of Water? A Futures Clearing Firm In A FINRA Arbitration

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I have previously written about issues uniquely affecting individuals who are dually registered as securities representatives (Series 7) and commodities associated persons (Series 3). In an Opinion and Order issued June 4,...more

Blank Rome LLP

Regulatory Update and Recent SEC Actions - April 2019

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REGULATORY UPDATES - Financial Industry Regulatory Authority (“FINRA”) Releases Its 2019 Priorities - On January 22, 2019, FINRA released its Annual Risk Monitoring and Examination Priorities Letter, which highlighted the...more

Bass, Berry & Sims PLC

Chris Lazarini Analyzes Presumption of Fraud in Case Involving Advisor's Effort to Avoid Paying a Promissory Note

Bass, Berry & Sims attorney Chris Lazarini analyzed a case in which a former investment advisor at UBS sought to prevent the company from collecting on promissory notes the advisor owed to UBS upon his departure. After the...more

Farrell Fritz, P.C.

Court Confirms Arbitration Award Against Respondent Who Failed to Check Her Mail

Farrell Fritz, P.C. on

A recent decision out of the Suffolk County Commercial Division underscores the importance of staying on top of your mail if you plan on leaving New York for an extended period of time....more

Carlton Fields

Enforcement of DOL’s New Best Interest Contract Exemption’s Anti-Arbitration Condition is Enjoined

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A number of lawsuits have been brought challenging aspects of the United States Department of Labor’s "fiduciary rule," which expanded the definition of "fiduciary" of an employee benefit plan or individual retirement account...more

Bass, Berry & Sims PLC

Chris Lazarini Analyzes "Common and Usual Meaning" Interpretation of Insurance Contracts

Bass, Berry & Sims attorney Chris Lazarini analyzed a case in which UBS Puerto Rico sought to overcome its insurance carriers' refusal to defend and provide coverage for two civil actions, settlements with the SEC and FINRA...more

Bass, Berry & Sims PLC

Chris Lazarini Comments on Court's Remand for Clarification of Arbitration Award

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Bass, Berry & Sims attorney Chris Lazarini commented on a case in which a court took the unusual step of remanding a case to the arbitration panel to explain the rationale behind its award. The Court made the decision because...more

Goodwin

Financial Services Weekly News - September 2017 #2

Goodwin on

Editor's Note - In This Issue. Federal banking agencies are seeking public comment on their proposed revisions to the Community Reinvestment Act (CRA), the Consumer Financial Protection Bureau (CFPB) released a small...more

Eversheds Sutherland (US) LLP

The Final Rule: DOL Proposes to Extend Transition Period until July 1, 2019, and Issues Additional Non-Enforcement Policy for...

By a notice published in the Federal Register on August 31, 2017, the Department of Labor proposed to extend from January 1, 2018, until July 1, 2019, the date for compliance with the full conditions in its new “investment...more

Carlton Fields

DOL Announces New Enforcement Policy on BIC Arbitration Limitation Class Actions

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In order for fiduciaries to receive compensation that varies based on their investment advice (e.g., commissions) or from third parties in connection with their advice (e.g., revenue sharing), they must comply with a...more

Goodwin

Financial Services Weekly News - July 2017 #3

Goodwin on

Editor's Note - Going Strong to the Mic. The Office of the Comptroller of the Currency’s (OCC) proposed special purpose nondepository national bank charter for FinTech companies (FinTech Charter) has long been the source...more

Kilpatrick

Broker-Dealers and Investment Advisers Exempted from CFPB’s Arbitration Agreement Rule

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The Consumer Financial Protection Bureau (the “CFPB”) issued a final rule on July 10, 2017 that has received widespread attention. The rule, promulgated pursuant to section 1028(b) of the Dodd-Frank Act, generally regulates...more

Robins Kaplan LLP

Your Daily Dose of Financial News

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Shareholders have accused Under Armour of “concealing the impact” of Sports Authority’s bankruptcy from investors in order to artificially inflate its stock price. The suit comes on the heels of a disastrous Q4 for UA, in...more

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