FINRA has ended the administrative postponement of in-person hearings in all hearing locations across the country. Last month, the Financial Industry Regulatory Authority (FINRA) announced that, effective July 5, 2021, it would end the administrative postponement of in-person arbitration hearing...
News And Thoughts On The Law In And Around New Orleans
FINRA Expunges Records from BrokerCheck
Many investors rely upon BrokerCheck, a resource maintained by the Financial Industry Regulatory Authority (FINRA), to research whether their broker has been the subject of complaints by regulators or other customers. However, many investors do not realize that the information provided by BrokerC...
FINRA ends Moratorium on In-Person Hearings
Due to COVID-19, the Financial Industry Regulatory Authority (FINRA) has administratively postponed all in person arbitration hearings since the COVID-19 pandemic began in spring of 2020. For all practical purposes, this moratorium on in-person hearings has prevented investors form being able to...
Coronavirus and Margin Calls
Margin calls have become a major issues for investors as a result of the market turbulence caused by the coronavirus (COVID-19) pandemic. Many investors use margin loans through their brokerage firm that are collateralized by the securities in their investment accounts. FINRA has reported that,...
Does Your Broker Have a Conflict of Interest?
Does your broker have a conflict of interest? The answer, most likely, is yes. The traditional form of compensation received by brokers is a commission each time an investment is bought or sold in your brokerage account. This compensation structure gives your broker financial incentives that are ...
The End of Forced Arbitration?
Whether you realize it or not, if you have an account with a brokerage firm, it likely includes a mandatory arbitration provision, which provides that you waive your right to file suit against the brokerage firm in court. Instead, all disputes with the brokerage firm will be submitted to arbitrat...
Bipartisan Bill Introduced to Empower SEC to Seek Restitution For Investors
On March 14, 2019, Senators Mark R. Warner, a Democrat from Virginia and John Kennedy, a Republican from Louisiana, introduced the Securities Fraud Enforcement and Investor Compensation Act, a bipartisan bill that would empower the U.S. Securities and Exchange Commission (“SEC”) to seek restituti...
Volatility-linked Investment Products may be Unsuitable for Most Investors
Investments in volatility-linked investment products raise suitability concerns for retirees and other retail investors. The Cboe Volatility Index (VIX) attempts to track 30-day forward looking volatility in the stock market based upon the price of S&P 500 Index put and call options. It is often...