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SEC Approves FINRA Ban on Motions to Dismiss

By Mark H. Astarita, Esq.

Brokers and brokerage firms have lost additional rights today, as FINRA announced that the SEC has approved FINRA's rule change which will virtually ban all motions to dismiss in FINRA arbitrations.No matter what your legal defense, unless it is eligibility or factual impossibility, you cannot make a motion to dismiss, and you must go to a hearing.This a shame, Without any evidence of abuse, other than convenient antedotes, FINRA proposed this rule, which materially alters the playing field in arbitration. Now every respondent must defend himself in any arbitration where any claimant cares to name him. It is amazing how much the industry will put up with. This rule change is going to codify the practice that FINRA has condoned for years - we do not grant motions to dismiss...continue to full post

Full post as published by SECLaw.com on January 08, 2009 (boomark / email).