Public Customer Arbitrations

Over the years that I have defended broker-dealers and investment advisors on customer-initiated claims, I have seen many things that would make any compliance officer cringe. One spine tingling (not in the good way) type of conduct is when an advisor engages his/her client when the client makes an informal complaint, instead of routing the

An allegedly defrauded investor may not compel a broker-dealer to arbitrate claims over his allegedly unsuitable investments.  See Berthel Fisher & Co. Financial Services Inc. v. Frandino, D. Ariz., No. DV-12-02165-PHX-NVW, 5/14/13.  The investor was not a “customer” of the firm’s registered representative for purposes of the FINRA arbitration code since the registered representative