Thursday, October 16, 2014

Third Party Bene is Not a Customer for Arbitration Purposes

A FINRA arbitration panel has dismissed a $32 million claim because the claimant was not a customer of the brokerage firms, and did not have an account with the Respondents.

The Claimant had alleged that he was an undisclosed third-party beneficiary to the investment contract at issue, and was therefore entitled to arbitrate the claims. Without a written agreement, and an admission that he had no dealings with the Respondent, the claim was dismissed.

See, FINRA Arbitration Award 13-02741 
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