Analyst Conflict Cases Set for Online Filings at NASD Arbitration
Introduction on online system moved up to accomodate analyst cases.
[Ed. This was originally posted in 2003 and is presented for historical reference]
NASD has submitted a rule revision to the SEC which would amend its claim filing rules to employ online filing procedures for claims attributing losses due to reliance on a recommendation from an analyst. SR-NASD-2003-151, sent to the Commission under date of October 6, 2003 proposes to amend the Statement of Claim section of NASD Rule 10314 to accommodate the expected flood of analyst-conflict cases that could be filed in the near future.
NASD has been planning conversion to a totally new MATRICS computer regime, with roll-out in six phases or releases between the second quarter of 2003 and the fourth quarter of 2005. It will accelerate one aspect of that conversion, planned for the final implementation phase, to implement an online claim notification procedure for analyst-conflict cases.
The accelerated implementation, NASD explains, is necessitated by an anticipated influx of arbitration cases arising out of the Global Settlement of conflicts of Interest Between Research analysts and Investment Banking (Global Settlement), executed earlier this year.
Under the plan, attorneys representing clients with analyst-related claims must complete a Claim Information Sheet, as is currently required, but s/he must do so on the NASD Dispute Resolution WebSite. Online submission will generate a Tracking Form which counsel will then file by mail, along with the Statement of Claim, the Uniform Submission Agreement, and the usual fees. The new procedure will be available to all filers, but will be required for the analyst-related claims.
Counsel who are tech-challenged may request assistance from the staff and, for the first 90 days of the two-year pilot, grace will be accorded those who cannot or do not comply.
NASD asserts that the new procedure will offer tools and online enhancements that will actively assist claimants and that the changes are needed to expedite the case intake process, provide better data recovery, reduce manual data entry, and provide for more efficient claims intake and administration. (ed: The current intake process and how it will be altered by the online changes are described in detail in the filing.) (SAC Ref. No. 03-39-01)
Copyright 2003 Securities Arbitration Commentator, Inc. P.O. Box 112, Maplewood, NJ 07040; t: 973-761-5880 f: 973-761-1504. Materials denoted with a SAC Reference No. (e.g. SAC Ref. No. 99-01-001) are on hand at SAC and may be obtained by calling the Securities Arbitration Commentator, or by email to firstname.lastname@example.org. The Securities Arbitration Commentator is the leading publication for securities arbitration news and information, and maintains the most complete database of arbitration awards availalble anywhere. For more information regarding their services, visit their website at www.sacarbitration.com
Nothing herein is intended as legal or financial advice. The law is different in different jurisdictions, and the facts of a particular matter can change the application of the law. Please consult an attorney or your financial advisor before acting upon the information contained in this article.
Mark J. Astarita is a veteran securities attorney representing investors and financial professionals nationwide in securities investigations and arbitrations. Have a question? Email him at email@example.com, call his office at 212-509-6544, or visit The Securities Lawyer
Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.
He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page - SECLaw.com, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.