By George H. Friedman* SAC Contributing Legal Editor and Board of Editors Member [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!] Over the past several weeks I’ve blogged on the state of arbitration on the eve of the […]

The Consumer Financial Protection Bureau’s (“CFPB”) proposed regulation governing predispute arbitration agreements in contracts involving financial products and services – if not the Bureau itself – may face rough sledding in 2017, if recent activity in Congress is any indication. As we have reported many times, the Consumer Financial Protection Bureau (“CFPB”) on May 5th […]

By Christopher G. Lazarini *FRCP 23 (a) and (b) set out four threshold requirements for class certification:  numerosity, commonality, typicality, and superiority, each of which must exist for class certification. **Where individual issues of reliance predominate over common issues, class certification should be denied. Roman vs. UBS Financial Services, Inc. of Puerto Rico, No. 12-1663 […]

Explained Award: Schneider v. Khalsa, FINRA ID #16-00680 (Albuquerque, NM, 11/23/16). Expungement recommendations by three-member panels are almost always unanimous, but the arbitrators in this independent expungement proceeding reached two diametrically different conclusions on the central issue of the case. That issue was whether the UBS Global Allocation Fund C (the “Fund”), a mutual fund […]

By David C. Franceski, Jr. A gift of confidential information from a tipper to a trading friend or relative constitutes sufficient personal benefit to the tipper to sustain a conviction of the tippee for insider trading under Section 10(b) of the 1934 Act. Salman vs. USA, Dkt. No. 15-628 (U.S. Sup. Ct., 12/6/16). A Circuit […]

More details have emerged on the proposed Justice for Victims of Fraud Act that would bar arbitration of disputes involving fictitious Wells Fargo accounts. Also, a bill has been introduced in the California Senate that offers a different approach. As we went to press with SAA 2016-45, we learned that on December 1, Senator Sherrod […]

By James L. Komie A court cannot review an arbitration Award where the party challenging the Award has not provided a sufficient record on appeal, including the arbitration agreement and a complete transcript of hearing testimony. Abbott vs. RBC Dain Rauscher Inc., No. 1-15-1612, 2016 IL App. (1st) 151612-U (Ill. App., 1Dist., 9/29/16). Documents Denied […]

FINRA staff acted within authority granted by the Code of Arbitration Procedure when they declined to extend the date for returning arbitrator rankings. And, no offset would be applied to the award absent express direction from the panel. UBS Financial Services, Inc. v. Padussis, No. 15-2148 (4th Cir. Nov. 22, 2016), was a promissory note […]