FINRA’s arbitration task force presented 51 recommendations to improve the arbitration process. Of special focus was the issue of the expungement of advisor’s disciplinary records. Hugh Berkson, president of the Public Investors Arbitration Bar Association, discussed the proposals his organization contributed to the process. The current system heavily favors the advisors, leaving their clients with the burden of fighting the expungements, Mr. Berkson explained. Additional proposed requirements include requiring the advisors to pay for their expungement proceedings, that those proceedings occur within 1 year, and allow clients to testify.
FINRA’s expungement process relies too heavily on the aggrieved investors to be fair or meaningful. The Public Investors Arbitration Bar Association, led by President Hugh Berkson, seeks reforms to shift responsibility to FINRA and allow the clients to testify at the hearings.
Hugh Berkson is a Securities Attorney with McCarthy, Lebit, Crystal & Liffman, Co. LPA with over 20 years of representing individuals who have lost money due to the negligence of investors and brokers.
Hugh is a past President of the Public Investors Arbitration Bar Association (PIABA), an international legal association composed of practitioners who represent investors in disputes with the securities industry. He was also just re-elected to PIABA’s Board of Directors, where he has served as a director since 2011.
