Will the SEC Listen to Congress or NAASA and act Under Dodd-Frank Wall Street Reform and Consumer Protection Act to prohibit the use of mandatory securities arbitration ?

On Monday, thirty seven members of Congress wrote to the SEC to end forced FINRA arbitration. In a letter to Chairperson White, they wrote:

We write to express our strong belief that the Securities and Exchange Commission (the ³Commission²) should promptly exercise its authority under Section 921 of the Dodd-Frank Wall Street Reform and Consumer Protection Act to prohibit the use of...

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According to FINRA Dispute Resolution Statistics, so far in 2013, only 44% of investors bringing claims against their stockbroker or brokerage firm recover any damages, and on average, even those that win, only recover 50% of their damages.

Empirical evidence clearly demonstrates that "Better representation may lead to better outcomes." The Influence of Arbitrator ...

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A federal court for the District Court for the Central District of Illinois entered an injunction against Timothy J.Roth, of Urbana, Illinois, a stockbroker with the NJ based firm Comprehensive Capital Management, Inc. for stealing more than $16 million of his clients’ mutual fund shares, liquidating the shares, and sending the ill-gotten gains to various accounts and companies under his control.

The judgment permanently enjoins Roth from violating the antifraud provisions of the federal securities laws. Roth consented to the judgment.

According to the
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Nicholas J. Guiliano, Esquire of the Guiliano Law Firm, P.C. is scheduled to speak at the Rutgers Law School Camden on April 12, 2013 on the history and practice of federal securities arbitration law, including recent developments in the law, as part of a course entitled Securities Litigation and Enforcement.

His lecture will focus on Common Myths and the Reality of Arbitration, the Contractual Arbitration of Investor Disputes, Who is a "customer," and recent developments in the law including UBS Fin. Servs., Inc. v. West Virginia Univ. Hospital, the Charles S...

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As Justice Louis D. Brandies once said not in a legal opinion, but in a book, "Sunshine is said to be the best disinfectant; Electric light the most efficient policeman," Brandies, Other People's Money (1914).

It is the responsibility of the United States Securities & Exchange Commission to oversee securities Self-Regulatory Organizations, including the Financial Industry Regulatory Authority or FINRA, which is the largest independent regulatory organization for securities firms doing business in the United States.

F...

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