The comment period closed December 18th on the FINRA Office of Dispute Resolution’s (“ODR”) Regulatory Notice on expungement. All commenters generally support the proposed changes, but all suggest improvements. As reported in SAAs 2017-48, -46, -41, -40 & -39, FINRA solicited public comments in Regulatory Notice 17-33 – Amendments to the Code of Arbitration Procedure […]

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By David C. Franceski, Jr. SEC enforcement actions seeking only “obey the law” injunctive relief and similar prospective business conduct bars that serve no retributive or remedial purpose are penal in nature and subject to the five-year statute of limitation of 28 U.S.C. § 2462. SEC vs. Gentile, No. 16-1619 (D. N.J., 12/13/17). The SEC […]

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No sign of the times could more surely signal that tectonic shifts have occurred in the securities marketplace than the decisions by Morgan Stanley and UBS Financial Services (and to a lesser degree, Citibank) to repudiate the Protocol on Broker Recruiting. Each, independently, but for relatively similar reasons, withdrew from this long-standing “peace treaty” among […]

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By Noah D. Sorkin *Federal courts have jurisdiction over private suits alleging that securities exchanges violated §10(b) of the Securities Exchange Act. **Stock exchanges enjoy absolute immunity with respect to their conduct as regulators, but not with respect to the sale of products and services to investors. City of Providence vs. BATS Global Markets, Inc., […]

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The comment period closed December 18th on the FINRA Office of Dispute Resolution’s (“ODR”) Regulatory Notice seeking comments on non-attorney representatives (“NAR”). With about 60 comments filed, a majority favor banning or restricting continued NAR use. As reported in SAAs 2017-48, -46, -41, -40, and -39, FINRA solicited public comments on Regulatory Notice 17-34 – […]

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By Pete S. Michaels A party with unique or special expertise may have a duty to disclose information within that expertise to other parties with whom it deals. Kortright Capital Partners LP vs. Investcorp Investment Advisers Limited, No. 16cv7619 (S.D. N.Y., 6/27/17). An Investment Deal Kortright Capital Partners LP and Investcorp Investment Advisers Limited are both […]

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By George H. Friedman* SAC Contributing Legal Editor and Board of Editors Member and Chairman of the Board – Arbitration Resolution Services [This is adapted from a post originally published in the author’s blog at Arbitration Resolution Services (ARS). Reposted with permission of and thanks to ARS!] I blogged recently about how well I did […]

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A Final Report Card on My 2017 Arbitration Predictions: “Pretty, Pretty, Pretty, Pretty Good!” By George H. Friedman* SAC Contributing Legal Editor and Board of Editors Member and Chairman of the Board – Arbitration Resolution Services [This is adapted from a post originally published in the author’s blog at Arbitration Resolution Services (ARS). Reposted with permission […]

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To close out this calendar year, we decided to investigate how the amount of compensatory damages claimed affects a customer Claimant’s case. This survey considers a number of factors that we thought might well differ depending on the claim amount: the number of hearing sessions, average turnaround time (ATT), win and recovery rates, and tendency […]

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By Christopher G. Lazarini A debtor may not escape a debt in bankruptcy if the debt arises from false pretenses, false representations or actual fraud; or from fraud or defalcation in a fiduciary capacity, embezzlement or larceny; or from violating a securities law resulting in a judgment, settlement or administrative order. Butler, In Re: Dorsch […]

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