FINRA News

A couple in Wichita have been left wondering who the industry funded Financial Industry Regulatory Authority (FINRA) was really set up to protect after 2 of the arbitrators placed on list for their case were found to be deceased. The couple lost $187,000 in a Ponzi scheme carried out by a Morgan Stanley broker. Almost every single American with a brokerage account must take their disputes to arbitration, a rule that was upheld in when the Supreme Court ruled in Shearson v. McMahon that a brokerage firm could force customers to agree to arbitration. Since then, virtually every firm has added a so-called mandatory arbitration agreement to its new-account documents. Far too often the arbitration panels are made up of former brokers or industry insiders. Often times the panelist have been found to be lying about their credentials or covering up pertinent conflicts of interests. In the Wichita case, the couple was sent a list of possible arbitrators that would [...]

FINRA issued two new Regulatory Notices recently in order to review rules on an ongoing basis. Regultatory Notice 14-14 requests comments on FINRA's communications with the public rules, and Regulatory Notice 14-15 requests comments on gifts, gratuities, and non-cash compensation rules. FINRA's rule reviews are targeted toward ensuring their rules stay relevant and are effectively designed to achieve their ends . FINRA's review process is completed in two stages. In the first stage, the findings stage, FINRA evaluates rules as they currently operate. In the second stage, the action stage, FINRA will engage in the rule-making process if it is found to be warranted in the first stage. FINRA then organizes rules for review and will consider a number of factors in order to complete the process. The regulatory notices identify specific rules FINRA has noted for review and ask for comment on a series of questions pertaining to the efficacy of those rules . If you or someone you [...]

In order to begin the arbitration process, a party should file a Statement of Claim with FINRA. This party is called the “claimant.” The party against whom the Statement is filed is called the respondent. The Statement of Claim itself should be thorough and include as many details as possible relating to the claim. This information may include the following: relevant dates, names of entities and individuals involved, the type of relief requested, and the respondents from whom the claimant is seeking relief or damages. Claimants may recover actual monetary damages, interest, and/or specific performance. After filing the Statement of Claim, the claimant should file a Submission Agreement and pay filing fees. These fees can be paid by check or paid online . Claimants can file their claims either online or by mail. To file a claim online, click here to go to the Arbitration Online Claim Filing System. To file a claim by mail, review the Uniform Forms Guide. [...]