Consumer Financial Protection Bureau (“CFPB”) Director Richard Cordray announced on November 15th that he will be departing the Bureau by the end the month. Hours later, the CFPB Website was finally updated to reflect that the Bureau’s arbitration rule has been disapproved and nullified. Mr. Cordray announced his intention to leave by email to employees, […]

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By Ben Suter *An arbitration panel’s decision to deny a continuance is not grounds to vacate an Award so long as there is a reasonable basis for that decision. **The applicability of FINRA’s six-year eligibility rule is a matter for the arbitrator to decide. ***An arbitration panel’s misapplication of a state’s statute of limitations does […]

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The Kentucky Supreme Court accepts SCOTUS’s striking its “clear statement” rule as arbitration-hostile, but a majority insists arbitration denial on alternative grounds was righteous. Recall that the Supreme Court on May 15th ruled 7–1 in Kindred Nursing Centers v. Clark & Wellner, 137 S.Ct. 1421, that a Kentucky rule of law requiring that a power […]

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By Paul J. Dubow *A broker takes confidential information even if he does not take written material but instead uses his memory. **A brokerage firm suffers irreparable harm if its customers believe that its confidentiality procedures have been violated when they are called by a broker who is now with a different firm. ***A broker […]

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Just as SAA 2017-39 went to press, we learned that FINRA on October 18th issued Regulatory Notice 17-33, Amendments to the Code of Arbitration Procedure for Customer Disputes to Expand the Options Available to Customers if a Firm or Associated Person is or Becomes Inactive. We offered a high-level review of the 11-page Reg Notice, […]

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By James L. Komie A plaintiff must be an employee at the time of the alleged retaliation by his or her employer in order to assert a claim under the Illinois Whistleblower Act. Money Management, Inc. vs. Thomas, No. 2-16-0333, 2017 IL App. (2d) 160333-U (Ill. App., 2Dist., 3/24/17). Sharing Commissions Appellant Thomas was employed […]

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The Consumer Financial Protection Bureau’s (“CFPB”) Final Rule on arbitration, which went into effect on September 18, was retroactively nullified by Congress on October 24, and the nullifying Resolution is expected to be signed into law soon by President Trump. The Rule, which would have impacted contracts signed after March 19 next year, among other […]

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By Ben Suter A non-signatory of an arbitration agreement that acts as a trade name of a registered representative who is a third-party beneficiary of the arbitration agreement is not a third-party beneficiary of the agreement itself, where the non-signatory is a separate entity from the registered representative. Steer Wealth Mgmt., LLC vs. Denson, No. […]

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Any doubts that the mid-summer feud between the Office of the Comptroller of Currency (“OCC”) and the Consumer Financial Protection Bureau (“CFPB”) has re-ignited are laid to rest with the latest round of communications between and from the two federal agencies. We reported in SAA 2017-37 that Acting Comptroller of the Currency Keith Noreika had […]

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