Firm Still Must Pay $32,000 In Forum and Related Fees ROBINSON v. FIRST ALLIED SECURITIES, INC., NASD ID #99-04441 (Pittsburgh, 9/25/01): This “selling away” case involved thirteen separately filed arbitrations that were consolidated for pre-hearing and hearing purposes. By the time of the hearing, the broker had declared bankruptcy, leaving […]
Brokers
Commentary, news and links of interest to financial advisers.
NASD Approves Customer Transfer Interpretation
NASD Approves Customer Transfer Interpretation Freezing accounts when broker transfers firms no longer an option Approved by the SEC on January 4, 2002, this new policy will assure that customers will be able to transfer accounts without restriction to follow a departing broker. The full text of IM 2110-7 states […]
Forcing Customers to Waive Rights Has Consequences
Linden vs. American Express Financial Advisors – since forcing Claimant to give up her rights under California law, court vacates order compelling arbitration. Linden v. American Express Financial Advisors, Inc., No. CIV 205839 (Cal. Super. Ct., Ventura Cty., 9/25/02). Agreement to Arbitrate * Enforceability * Equitable Doctrine (Impossibility; Impracticality; Unconscionability). […]
Broker Seeks Declaratory Relief on Employment Agreement
And obtains the relief – before he leaves his current employment BUTLER v. PWI, NASD ID #01-00763 (Atlanta, 4/12/01): In this unusual “raiding/recruiting” case, the broker seeks and obtains declaratory relief before he leaves the broker-dealer. The broker was a partner in J.C. Bradford & Co., a Tennessee regional house […]
Solomon Smith Barney Reps Lose CAP Request
Archives Whose Money Is It Anyway? Solly Smith Barney Reps Lose CAP Request By Rick Weinberg Several former Salomon Smith Barney brokers seeking the authorization to start a national class action suit against the firms Capital Accumulation Plan (CAP) had their request rejected by a federal judge in Boston, according […]
Analyst Disclosure Issues
Analyst Disclosure Issue Would Snag Brokers New NASD Proposal will require more disclosures by retail brokers. The war on analysts is now threatening brokers. In proposing heightened disclosures from analysts, the NASDR has included retail brokers as well. The July proposal, NASD Notice to Members 01-45, broadens disclosure obligations for […]
New Broker Disclosure
New NASD Proposal will require more disclosures by retail brokers. The war on analysts is now threatening brokers. In proposing heightened disclosures from analysts, the NASDR has included retail brokers as well. The July proposal, NASD Notice to Members 01-45, broadens disclosure obligations for public appearances by analysts and brokers […]
Analyst Disclosure Issue Would Snag Brokers
New NASD Proposal will require more disclosures by retail brokers. The war on analysts is now threatening brokers. In proposing heightened disclosures from analysts, the NASDR has included retail brokers as well. The July proposal, NASD Notice to Members 01-45, broadens disclosure obligations for public appearances by analysts and brokers […]
NASD Rule 2211 – Telemarketing
Text of Amendments to NASD Rule 2211 – Telemarketing (Note: The original rule was formerly Article III, Section 1 of the NASD Rules of Fair Practice) One June 28, 1996, the NASD filed a proposed change to the Telemarketing Rule, Rule 2110, in response to the rules introduced by the […]
Proposed MSRB Interpretations
Proposed MSRB Interpretations Interpretation of Dealer’s Affirmative Disclosure Obligations Released By John M. Baker, Esq. Feb. 12, 2002 – The Securities and Exchange Commission this week published comment notices for two Municipal Securities Rulemaking Board notices on the responsibilities of dealers to municipal securities customers. The notice published today proposes […]