By Christopher G. Lazarini *Federal district courts must conduct a de novo review of those parts of a Magistrate Judge’s Report and Recommendation to which a party properly objects and may reject or modify the Magistrate Judge’s ruling only if it is clearly erroneous on the facts or contrary to the law. **A SEC informational […]

Speaking at an April 9th meeting of the SEC’s Investor Advisory Committee (“IAC”), SEC Chair Mary Jo White said that rulemaking on establishing a uniform fiduciary standard is “front and center” for the Commission. Ms. White’s remarks, which can be heard around the 4-minute mark of the meeting’s webcast, were as follows: “As most of you […]

By William D. Nelson The National Credit Union Act’s Extender Statute is a statute of limitations, not a statute of repose; therefore, its time limits establish only an affirmative defense that may be waived. National Credit Union Administration Board vs. Barclays Capital, Inc., No. 13-3183 (10th Cir., 3/3/15). The Failed Settlement and Its Consequence The […]

By George H. Friedman* I recently authored a post in my blog at the Securities Arbitration Commentator, CFPB Issues Final Report on Arbitration, Telegraphing a Ban or Limits on Arbitration. Should SEC follow Suit? While the short answer was “no,” I did go on to explain my thinking. The blog post touched off a lively […]

We have reported previously on the Department of Labor’s (“DOL”) intention to establish a fiduciary standard for those offering investment advice concerning retirement accounts (see SAA 2015-12). After President Obama strongly endorsed the fiduciary standard for retirement accounts, the agency followed through with a proposed rule that would create a uniform “best interest of investors” […]

By Paul J. Dubow *A brokerage firm that loses an arbitration because of its speculative trading with an insurance company cannot recover the amount of the award from the State because the State erroneously advised the insurance company that it could engage in such trading. **Equitable indemnity is only available among tortfeasors who are jointly […]

We covered previously McGill v. Citibank, NA, 232 Ca4th 753 (Dec. 18, 2014), where the California Court of Appeal ruled that the Federal Arbitration Act preempts application of the state’s “Broughton-Cruz Rule,” holding that arbitration provisions are unenforceable as against public policy if they require arbitration of injunctive relief claims brought for the public’s benefit […]

By James L. Komie “Cause” exists under Section 707(a) of the Bankruptcy Code to dismiss a Chapter 7 bankruptcy case where debtor, a registered representative against whom an arbitration Award has been entered on a promissory note, continues his “extravagant lifestyle” and spending post-petition. Schwartz, In Re, No. 13 B 44047 (N.D. Ill., Bankr., 2/11/15). […]

By James L. Komie “Hobson’s choice: a situation in which you are supposed to make a choice but do not have a real choice because there is only one thing you can have or do.” Consider the following scenario. A member firm files a FINRA arbitration claim against an associated person to recover the […]

In what we first thought was a belated April Fool’s Day prank, it was announced on April 2nd that long-time Vice President and Director of Neutral Management Barbara Brady was leaving FINRA the next day, because her position had been eliminated.   The news, which was shared with us by SAC Editorial Board members and […]