In a FINRA Arbitration, the Estate of Orpheus Meranda alleged that Respondent David Gregory Schlager and Respondent Edward Jones failed to perform a suitability determination. How did the broker and the brokerage firm defend against this claim from the grave? What helpful advice can brokers and investors gain from this case? READ BILL SINGER'S COLUMN AT: The Hand from the Grave: Estate Sues Edward Jones Over Suitability
On January 25, 2011, Gizankis filed an application for review of a FINRA disciplinary action, which had barred her for failing to respond to a request to provide information in connection with her termination from Wells Fargo Advisors. In seeking to have the Securities and Exchange Commission set aside FINRA's bar, Gizankis explained that because she recently relocated to another state, she had not received FINRA's demands for the production of information or the subsequent suspension notices that resulted in her Bar. READ THE UPDATED VERSION OF THIS STORY. INCLUDES RECENT FINRA SETTLEMENT: UPDATE: The Wells Fargo Broker Who Would'nt Give In to FINRA Bar
Suppose that an unhappy investor didn't specifically name you in a lawsuit or arbitration when he complained about your investing advice. You'd think that would get you off the regulatory disclosure hook, right? Think again.
According to the Financial Industry Regulatory Authority's rules, you could still be required to file a disclosure report even if your name is omitted from the caption of respondents (in arbitrations) or defendants (in court proceedings) - and even if you're not identified by name in the complaint.
FINRA requires your member firm to make a good faith determination about whether you were the responsible "unnamed" registered person. If your firm reads between the lines and figures out that it's you, you will likely wind up with a report on your Central Registration Depository ("CRD") or Form U4.
READ BILL SINGER'S Street Legal column at Registered Rep. magazine to learn how one broker recently dealt with this dilemma: Blaming, Naming and FINRA Gaming