Last week, FINRA issued Regulatory Notice 21-16 cautioning member firms against attempting to limit customer claims through language in mandatory pre-dispute arbitration agreements. Rule 2628 prescribes disclosure requirements for arbitration clauses and generally prohibits provisions that contradict other FINRA Rules.
The Notice specifically cautions against several provisions that improperly limit customer claims:
First, firms cannot specify hearing locations, because FINRA Rule 12213 provides the Arbitration Director will. FINRA usually schedules hearings ...
On March 4, FINRA issued a Regulatory Notice warning member firms not to fall for phishing scam preying on compliance fears. The scam uses a phony email address, supports@finra-online.com, demanding an immediate response to an “attached report” of “regulatory non-compliance.” FINRA doesn’t have a “finra-online” domain and its gTLD is “.org” not “.com”.
Regulatory Notice 21-08 (Mar. 4, 2021) is here.
Thomas K. Potter, III (tpotter@burr.com) is a partner in the Securities Litigation Practice Group at Burr & Forman, LLP. Tom is licensed in Tennessee ...