Category Archives: FINRA
What Types of Misconduct Does FINRA Look For at Brokerage Firms?
FINRA has released its annual examination priorities letter. The letter identifies the specific areas FINRA will be focusing on when it conducts examinations of its member brokerage firms in the coming year. According to FINRA, the list is developed based on trends it has seen in the previous year, as well as concerns expressed… Read More »
What are the Differences Between FINRA Arbitration and Mediation?
When you open a brokerage account, you most always agree to bring any future disputes that arise with your stockbroker or brokerage firm to FINRA for adjudication. This means you give up your right to a jury trial. FINRA offers both arbitration and mediation services. In a nutshell, mediation is where a neutral third-party… Read More »
Can a FINRA Securities Arbitration Award be Appealed?
Yes, technically, but in reality, no. Under the law, a FINRA securities arbitration award can be appealed, but practically speaking, arbitration awards are rarely changed when appealed. Indeed, under the Federal Arbitration Act and the Florida Arbitration Act, a party has the legal right to file an action in court to vacate or modify… Read More »
Arbitrating an Investor Case vs Suing in Court
An investor who is abused by his or her securities broker cannot sue in court. Instead, the investor must sue the broker or the brokerage firm in arbitration before the Financial Industry Regulatory Authority, otherwise known as “FINRA.” FINRA maintains its own arbitration forum that shares certain features of court litigation, but is also… Read More »
Life Cycle of a FINRA Claim
Virtually every new account application with any brokerage firm contains a pre-dispute arbitration agreement. This agreement requires that any dispute you have with your stockbroker or brokerage firm be filed with the Financial Industry Regulatory Authority (“FINRA”) instead of being filed in court. The FINRA arbitration process differs from the court system in several… Read More »
FINRA Fines MetLife Securities for Variable Annuity Switches
According to the Financial Industry Regulatory Authority (FINRA), it has fined MetLife Securities, Inc. (MetLife) $20 million and ordered it to pay $5 million in restitution for misrepresenting and omitting material information in connection with variable annuity switches. FINRA found that, during the period 2009 to 2014, MetLife misrepresented the costs and guarantees of… Read More »
What is Securities Arbitration?
Securities arbitration is the legal process by which most disputes between customers and brokerage firms are resolved. Arbitration is an alternative to traditional litigation, which takes place in a courthouse before a judge and jury. When a person goes to arbitration, he or she is giving up, or surrendering, the right to have a… Read More »
Top Priorities for Securities Regulators in 2016
The Financial Industry Regulatory Authority (FINRA) recently released its annual list of regulation and examination priorities for 2016. As usual, there are many recurring themes from previous years’ lists, with a few new items thrown in for good measure. Here are some of the things FINRA will be focusing on this year when it… Read More »
SEC Approves Rule Requiring Brokerage Firms to Link to BrokerCheck
The Financial Industry Regulatory Authority, also known as “FINRA,” provides a public database that investors can use to research their brokers’ professional background and disciplinary history. Investors can learn important information such as: Whether the broker has been sued by other investors; If so, how much the broker paid to settle those suits; Whether… Read More »
Arbitration Stinks for Consumers – NY Times Agrees!!
If you have a brokerage account with a major brokerage firm in the United States today, you have almost certainly agreed to resolve any dispute through mandatory arbitration. This means you cannot take your case to a courthouse to be heard by a jury. Instead, you must take your case to arbitration before the… Read More »