by Lauri F. Rasnick FINRA is contemplating a new rule that would require brokers transferring firms to inform clients about their signing bonuses or other compensation they are receiving in connection with their moves. The potential rule, which is now out for public comment, is being considered to protect customers. By mandating disclosure of the… Continue Reading
Tag Archives: FINRA
New FINRA Rule Confirms That Whistleblower Claims Need Not Be Arbitrated
Before the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd Frank”) was enacted, whistleblower claims by registered representatives, including those arising pursuant to the Sarbanes-Oxley Act of 2002 (“SOX”) were subject to mandatory arbitration at FINRA. See FINRA Notice 12-21 (PDF). Dodd Frank changed that. Dodd Frank specifically amended SOX to provide that “[n]o dispute… Continue Reading
FINRA Cases To Be Heard By One Arbitrator, Without A Hearing, Have Been Expanded
By: Dena L. Narbaitz This is the fourth in our series of posts on practice and procedure in employment-related arbitrations before FINRA. Check back often for future posts, subscribe by e-mail (see the sidebar), or follow @FSemployer on Twitter so you don’t miss any updates! The FINRA Code of Arbitration Procedure provides for a simplified arbitration… Continue Reading
FINRA Rules 13201 and 13802: Arbitrating Statutory Employment Discrimination Claims
By: John F. Fullerton III This is the third in our series of posts on practice and procedure in employment-related arbitrations before FINRA. Check back often for future posts, subscribe by e-mail (see the sidebar), or follow @FSemployer on Twitter so you don’t miss any updates! Once upon a time, it was mandatory under Form… Continue Reading
FINRA Rule 13803: Compelling Arbitration Claims to be Filed in Court
By: John F. Fullerton III This is the second in our series of posts on practice and procedure in employment-related arbitrations before FINRA. Check back often for future posts, subscribe by e-mail (see the sidebar), or follow @FSemployer on Twitter so you don’t miss any updates! As a general rule, it is more common to… Continue Reading
How to Choose a FINRA Arbitration Panel
By: John F. Fullerton III This is the first of a series of posts on practice and procedure in employment-related arbitrations before FINRA. Check back often for future posts, subscribe by e-mail (see the sidebar), or follow @FSemployer on Twitter so you don’t miss any updates! More than one lawyer has been burned by a FINRA arbitration… Continue Reading
Something to Consider When Deciding Whether to Compel FINRA Arbitration
By: Dena L. Narbaitz Here is the scenario: your company, a FINRA Member Firm, terminates a broker for “violation of company policies” and reports this as the reason for termination on the broker’s Form U-5 (Uniform Termination Notice for Securities Industry Registration). The broker then sues your company in state court asserting several claims, including… Continue Reading
FINRA’s $1 Million Dollar Fine of Merrill For Dodging Arbitration of Claims
By: Lauri F. Rasnick FINRA recently announced that it fined Merrill Lynch, Pierce, Fenner & Smith (“Merrill”) one million dollars for failing to arbitrate claims with employees. See January 25, 2012 News Release. The disputes at issue arose out of promissory notes executed by Merrill employees in connection with the Bank of America Corporation (“BOA”) acquisition. … Continue Reading
Negotiating FINRA U5 Termination Language Can Later Disqualify an Employee’s Attorney
By: John F. Fullerton III A recent New York state court decision granted a fairly unique petition to disqualify the attorney for a group of former employees from representing them in an intra-industry arbitration at FINRA. Why? Because the lawyer had turned himself into a fact witness by negotiating the termination explanation in the U5… Continue Reading
