Investment advisor and financial advisor. While many investors use the terms interchangeably, they are very different. For both the Securities Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), investment advisors and financial advisors are distinct roles. The training they must complete is different, including the exams they must pass to use their title.…
After an arbitration claim proceeds past the initial pleadings phase, parties must participate in the exchange of documents and information also known as discovery. But what documents do you have to turn over to the other side? What documents and information should you expect to receive from your current or former customer? This article explains…
Article I, Section 15 of the North Carolina Constitution provides that “[t]he people have a right to the privilege of education, and it is the duty of the State to guard and maintain that right.” N.C. Const. art. I, § 15. The North Carolina Constitution implements this provision in Article IX, Section 2 by commanding…
Assume you find yourself in the unfortunate situation where a current or former customer has filed a claim against you or your broker-dealer. The claim will proceed to arbitration, but who will make a ruling on the claims against you? There is no judge, there are no juries, just arbitrators and a panel. But who…
As the industry moves past the “good faith effort” and “reasonable progress” standards of the first six months of Regulation Best Interest (Reg BI), the SEC’s standard of conduct for broker-dealers and associated persons when making a recommendation to a retail customer of any securities action or investment strategy involving securities, broker-dealers and associated persons…
Registered representatives seeking to expunge customer dispute information from the Central Registration Depository system (“CRD”) will likely be required to pay increased FINRA filing and hearing fees in the near future.[1] With Proposed Rule Change 2020-005, FINRA seeks to amend Part IX of the FINRA Code of Arbitration Procedure for Customer Disputes and the Code…
Recent market volatility associated with COVID-19 has the potential to result in a large uptick in arbitration filings with the Financial Industry Regulatory Authority. Following a February to March decrease in the S&P 500 of over 34 percent and the recent historic dip in oil prices, investor confidence is understandably shaken. For broker-dealers and registered…