The Law of the Financial Markets
Friday, January 22, 2021
Securities arbitration refers to the alternative dispute resolution process to resolve claims between broker firms and their customers and employees. FINRA operates the largest arbitration forum in the United States for the resolution of these disputes.
While no one can be forced to give up their rights to a trial in court, virtually all agreements between investors and their stockbrokers include mandatory arbitration agreements, and every registered stock broker is required to arbitrate their disputes with their customers and firms.
Our site has been providing information regarding securities arbitration since 1995, starting with Overview of the Securities Arbitration Process. We update the site on a regular basis and invite you to explore our commentary and links, and to ask questions.
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UBS customers who have lost money in the UBS Yield Enhancement Strategy (UBS YES), and who have filed arbitration claims against UBS to recover their losses are having their cases move to hearings before FINRA. UBS YES involved investing in options with a complex series of put and call spreads […]
The FINRA CRD system, with its BrokerCheck component, has been a thorn in the side of financial professionals since BrokerCheck was created. Expungement is one way to lessen the impact. Form U-4 and Form U-5 were designed to provide important information to regulators, including pending claims and investigations. The Forms […]
A California federal judge has sided with the issuers of a gaming-related initial coin offering, saying that despite arguments from purchasers of the WAX digital currency to the contrary there is a valid arbitration agreement and the case will be stayed pending arbitration. Read more at: https://www.law360.com/securities/articles/1301386/crypto-investors-case-against-gaming-co-must-be-arbitrated
Securities arbitration has become the most often used method of resolving disputes in the securities industry. Since the late 1970’s, FINRA and its predecessors have required brokerage firms and stock brokers into securities arbitration to resolve their disputes with each other, and with their customers. That requirement led to brokerage […]
With losses approaching 70% for some investors, sitting on the sidelines, waiting for the funds to turn around is apparently not working for investors in the GPB Capital funds, and the situation is not getting better. While investors are filing arbitrations to recover their losses in GPB Capital, and investigations […]
A former star broker for UBS Financial Services Inc. who was repeatedly called a “bitch” by her boss won a $1.6 million discrimination arbitration award last month. According to InvestmentNews.com, the broker, Chrisine Carona, worked for UBS in Boston from March 2009 through July 2017 and currently is employed by Morgan Stanley. She was […]
Investors who lost money in UBS’ Yield Enhancement Strategy (YES) may be able to recover their losses
Discovery has always been a problem in litigation matters. In broad strokes, plaintiffs want to see every document that might possibly have any bearing on any issue in the case, and defendants don’t want to produce a single document. The courts and arbitration panels spend a significant amount of time […]
Judge Laura Taylor Swain of the Southern District of New York has issued a decision defining a customer, for purposes of FINRA Rule 12200 as being a person or entity who have an account with the member, or who has purchased goods and services from the member. In doing so, […]
Securities Arbitration is not like any other proceeding Nationally known securities attorney Mark Astarita has represented broker-dealers, investment advisers, hedge funds, investment partnerships, individual brokers and investors, across the country for over 30 years in well over 700 securities arbitrations. To find out if he can help you with your […]
