1. As part of a pre-settlement agreement, member companies and customers may accept dispute resolution outside the FINRA forum. Despite what some of the author`s comments might imply, the securities arbitration process has proven to be a fair and appropriate method for resolving a large number of client disputes and has served tens of thousands of participants over the years. However, a successful arbitration hearing requires careful preparation and reflection, and the trial should not be taken lightly or considered insignificant or insignificant, as it is not ”in the process of being tried”. Clients and brokers often have millions of dollars on gambling in securities arbitration proceedings, and the procedure, regardless of the dollar amount, is as serious, as important and as compelling as a process. The final rule of the BIC cites FINRA`s arbitration model as a way forward. ”The department`s approach in this regard is consistent with FINRA rules, which allow for mandatory arbitration before individual disputes are resolved, but not for class actions. Section 12000 of the FINRA Manual establishes an arbitration settlement for client disputes, which establishes rules for, among other things, filing claims, amending briefs, hearing conferences, detecting and punishing for inappropriate behaviour. On April 6, it was learned that the Ministry of Labour (”DOL”) had concluded its long-awaited rule for the creation of a single ”Best Interest of Investors” standard for those offering retirement account investments. To my surprise, DOL not only authorizes mandatory pre-litigation agreements, it also considers PDAas to be good things. However, such preliminary agreements have not been generally accepted by the courts and many courts have refused to impose arbitration agreements prior to litigation. However, the MacMahon Supreme Court decision resolved this issue on the basis that such agreements were enforceable, and thus began to apply almost universal arbitration in client-broker disputes.
In general, the regulatory communication reminded member companies of their obligations under FINRA`s arbitration rules, which prohibit companies from imposing exclusive rules on their customers or related persons, in the context of prior conflict agreements, for the selection of forums that refuse or limit the possibility of access to the FINRA arbitration tribunal. FINRA indicated that its securities dispute settlement forum was in place to address any discrepancies between clients, associates and member companies in a fair, efficient and cost-effective manner, enabling clients and associates to resolve cases more quickly, cheaply and without the assistance of a lawyer.