Forbes Street Sweeper Posts Two Provocative Columns by Bill Singer

January 10, 2013

Raymond James Wrongful Discharge Case 
Is A Minefield For Stockbroker

In a Financial Industry Regulatory Authority ("FINRA") Arbitration Statement of Claim filed in April 2011, Claimant Pavlovich alleged that on February 2, 2011, he was wrongfully terminated by Respondent Raymond James  and the firm falsely reported the reason for his termination on his Uniform Termination Notice For Securities Industry Registration ("Form U5") - such misinformation purportedly prevented him from being able to take his client accounts to another firm and caused irreparable harm to his business.

Not Borrowing Money From Customers 
Got Stockbroker Suspended

FINRA's Borrowing Rule contemplates that an actual loan occurred and that the registered person failed to obtain prior firm approval for that loan. All of which presents us with the conundrum of whether you can properly charge a registered person with failing to provide prior notice to an employer firm about a proposed loan that never happened.