Regulation Best Interest and Customer Dispute Arbitrations: Uncertainty Ahead

Daniel Strong

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…

Significant Changes Coming for Brokers Seeking an Expungement of Customer Dispute Information

Daniel Strong

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…

COVID-19 and the Potential for a Significant Increase in FINRA Arbitrations

Daniel Strong

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…