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FINRA To Ease Arbitrator Standards In Bonus Cases

By Stark & Stark

Thomas B. Lewis, Chair of Stark & Stark's Employment Group, was quoted in the December 21, 2010 Financial Advisor Magazine article, FINRA To Ease Arbitrator Standards In Bonus Cases. As the number of cases involving brokers' signing bonuses continues to increase, FINRA is seeking to reduce the requirements for who can serve on arbitration panels hearing the cases. Since the increase began in 2008 the number of claims filed over unreturned bonuses has more than doubled and now FINRA is having a tough time finding enough arbitratiors to fill the hearing panels.

And it doesn't look like the number of claims will be settled any time soon. Mr. Lewis states, 'There is a common misconception among advisors that brokerages will negotiate the balance, and that is contributing to the increase in the number of cases. There's a notion among brokers that firms will take fifty-cents on the dollar, but firms want a hundred percent.'

You can read the full article online here.
 

Full post as published by New Jersey Law Blog on December 21, 2010 (boomark / email).