Arbitration rule targets brokers
Finra has proposed requiring registered firms to report allegations of sales practice violations against individual brokers in arbitration claims or civil lawsuits even if the rep is not specifically named as a respondent.
Finra has proposed requiring registered firms to report allegations of sales practice violations against individual brokers in arbitration claims or civil lawsuits even if the rep is not specifically named as a respondent. The proposed rule amendments essentially would require such information to be reported the same way as customer complaints are currently reported to the Central Registration Depository. Comments on the proposal were due in May. For further details, go to finra.org/rulesregulation/noticestomembers/2008notices/P038381.
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