FINRA’s dispute resolution process is subject to possible reform. Fifty-one reform recommendations were presented by the regulator’s arbitration task force. A significant focus is on the expungement process, including the development of a special panel of arbitrators to address these cases. Other key recommendations include the addition of a mediation process, increased arbitrator honorarium, and …
We’re proud to report that our partner, Hugh Berkson, has begun his term as President of PIABA, the Public Investors’ Arbitration Bar Association. PIABA, an international bar association with more than 400 members, is the largest US organization of lawyers who represent investors in arbitrations against stockbrokers. PIABA’s mission statement reads: The mission of PIABA …
The Public Investors Arbitration Bar Association (PIABA) believes the SEC should increase the public comment period for the proposed merger of its independent arbitration division of the Financial Industry Regulatory Authority (FINRA) with its regulatory arm. PIABA President Hugh Berkson explains that the change could further reduce investor confidence.
The SEC approved regulations regarding crowdsourcing to allow small businesses to seek funding from ordinary people. Non-accredited investors can now invest up to $2,000 or 5% of their annual income in small scale fundraising projects. Many people are excited about the change, but Hugh Berkson expressed concern for the peril small investors may face.
Investors who use FINRA’s database to research brokers are not getting a complete picture due to the high rate of expungements. Almost 89% of brokers who have had settlements or awards granted to investors had this information removed from their records, making it difficult for investors to know who to trust. “A wholesale change needs …
PIABA recently released a disappointing update to its 2013 report on the expungement of broker records following a settlement. Despite FINRA’s adopting PIABA recommendations two years ago, there continues to be a high rate (89%) of expungements granted. New recommendations were presented and Hugh Berkson stated that the wholesale changes must be made.
According to a recent PIABA report, almost 90% of brokers who are found guilty of misconduct successfully have this information expunged from their records. Although expungement is deemed an extraordinary measure it has become commonplace, which places investors at risk. Hugh Berkson believes that a “wholesale change” in the system must occur.
In a comment letter to the SEC, Hugh Berkson stated that the Thrift Savings Plan program should be made available to military personnel who do not serve on military bases and to military personnel’s dependents. In addition, he believes more financial education should be provided to all those who serve in the military.
Investors are denied due process when bringing claims through arbitration. Panel candidates are appointed by FINRA with no opportunity for investor’s or their attorneys to challenge them and FINRA has refused to provide any documentation on the panelists. Hugh Berkson suggests, in the article, that some arbitrators’ decisions demonstrate clear bias against investors, who have …
Hugh Berkson coauthored a letter to the FINRA Dispute Resolution Task Force regarding three ongoing issues of concern: investor mandatory arbitration, decline of investor rights after Dodd-Frank, and lack of public disclosure of arbitration data. The current arbitration structure is inherently biased against investors and changes must be enacted.
Commenting on the proposed FINRA regulation regarding pricing information of retail fixed income trading transactions, Hugh Berkson, Executive Vice-President/President-Elect, PIABA, explains that he supports the transparencies the regulation would require but believes it should extend beyond its current scope. Rather than be limited to 100 bonds or a face value of $100,000 or less, the …
It’s always nice to have one of our lawyers receive national recognition from our peers in the investor advocacy bar. Thus, we’re pleased to announce that Hugh D. Berkson, one of our team members in Stockmarketloss practice group, has been named Executive Vice-President and President-Elect of PIABA, the Public Investors Arbitration Bar Association. PIABA, an …
In a letter to the SEC, Hugh Berkson explains why the proposed rule change regarding equity research analysts and research reports is a slight improvement but doesn’t go far enough. He believes that FINRA members must inform their clients of any contradictory recommendations and research on the products they sell.
Hugh Berkson, President-Elect of the Public Investors Arbitrators Arbitration Bar Association (PIABA), was a featured panelist at the 2014 Ohio Securities Conference, which drew over 125 attendees from across the country.
Though we’ve spent the summer busily transforming the investment losses of our clients from mountains to mere molehills, our last post here was way back in July. Yes, a six-week absence is unacceptable. But in our defense, I would point out that Cleveland winters last around six or seven months, so when summer finally arrives, …
