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Turbulent Seas Ahead: New Arbitration Issues for Broker-Dealers  (Volume 54, Number 5–March 10, 2021)

Author:  Alex M. Madrid.; Natasha S. Cooper.

Source: Volume 54, Number 05, March 1 2021 , pp.55-64(10)

Review of Securities & Commodities Regulation


Member firms can expect a rise in new arbitration claims based on the continued focus on senior investors amid the COVID-19 pandemic and the implementation of Regulation Best Interest. The authors discuss the proposed expansion of FINRA Rule 2165, the National Adjudicatory Council’s revised Sanction Guidelines, and what claims to expect related to senior investor issues. Finally, they detail Regulation Best Interest and how the obligations may influence customer arbitration disputes, despite the SEC making it clear it does not create a private right of action.

Keywords: Senior Investors; FINRA Rules 4512 and 2165; Diminished Capacity; Third-Party Exploitation; Regulation Best Interest

Affiliations:  1: McGuireWoods LLP; 2: McGuireWoods LLP.

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