Vestax Securities Corporation vs. McWood, No. 00-1936 (6th Cir., 2/14/02) Agreement to Arbitrate * Arbitration Agreement (SRO Requirement) * Scope of Agreement * Selling Away * SRO Rules * Statutory Definitions (“Customer”) * SRO Rules (NASD Rule 10301). Investors who purchased securities through a broker-dealer’s agents are “customers,” for purposes […]
Tag: Compel Arbitration
Court Compels Arbitration Without Direct Account Relationship With Customer
If selling broker is associated person, and claimant is his customer, BD compelled to arbitrate BMA Financial Services, Inc. v. Guin, 2001 U.S. Dist. LEXIS 18556 (W.D. La., 9/27/01): In the absence of a direct account relationship, a court will compel a firm to arbitration, if the selling broker is […]
Make Mandatory Arbitration Unenforceable
Commentary from T. Sheridan O’Keefe I have something in common with Stephen Sawtelle — a former broker from Waddell & Reed who was just awarded almost $28 million from an NASD arbitration panel (see the front page story in The Wall Street Journal, Aug. 29, 2001). You see, we both […]
