Arbitrator Finds No Extraordinary Circumstances Existed That Would Permit the Equitable Tolling of FINRA’s Six-Year Eligibility Rule

Marshall Dennehey
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In an action filed in 2022 involving allegations of breach of fiduciary duty, negligence and fraud related to certain unspecified securities, an arbitrator granted the respondent broker-dealer’s motion to dismiss pursuant to FINRA Rule 12206. The arbitrator found that the claimant closed her account with the respondent in 2001 and that no extraordinary circumstances existed which would permit the equitable tolling of FINRA’s six-year eligibility rule. In her opinion, the arbitrator referenced the federal recordkeeping requirements applicable to broker-dealers as a basis for her decision.

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