Monday, June 27, 2016

Broker Pays the Price for Passing on Arbitration

Lessons Learned: You cannot ignore an arbitration complaint. You will lose, and the award will become a judgment. Plus - FINRA's two year jurisdiction retention does not limit your arbitration agreement.

From the Securities Arbitration Commentator:

The term “customer” in FINRA Form U-4 and FINRA’s Code of Customer Arbitration Rule 12200 includes a member firm’s account-holder victimized by the rogue investment activities of a FINRA registered broker, even with respect to investments made outside the account that do not result in any commissions or fees to the broker.

The court decision affirming the arbitration award is here.

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