Arbitration Claims Projected to Spike as Oil & Gas Plummet

Posted on June 6th, 2016 at 12:29 PM
Arbitration Claims Projected to Spike as Oil & Gas Plummet

From the Desk of Jim Eccleston at Eccleston Law LLC:

With the stagnant, below-average performance of energy sectors such as oil and gas, many investors hold investments that have lost most of their value. As a result, there is an expected wave of arbitration claims coming in 2016 for advisers who investors claim put too much of their money into energy investments that imploded as U.S. oil prices collapsed.

Investors across the country lost millions, some of which was set aside for retirement, forcing retirees and close-to-retirees to seriously reconsider their futures. The consistency of losses, weighted heavily in retirement savings, has led many in search of answers. Investors argue that brokers, who made oversized bets with their retirement money, are to blame.  

The high yield default rate is expected to increase in 2016 to 20%, more than doubling the 7% rate in 2015 according to Fitch Ratings. Additionally, the oil exploration and production 12-month trailing default rate is expected to reach at least 30% by the end of 2016.

Mr. Soreide confirms that it’s difficult to estimate the number of claims to be brought against brokers and advisers, but he is confident that it is likely that more are on the way. In many cases, investors do not become aware of their losses until year-end statements are sent to them from their broker. The end of 2016, then, could see a large spike in arbitration claims. 

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston

Return to Archive



As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.


January 25, 2022
Top FINRA Initiatives For 2022

A host of new initiatives are ahead in 2022 at the Financial Industry Regulatory Authority (FINRA), according to CEO Robert Cook.

January 24, 2022
FINRA Set To Issue Crypto Notice And Consider Expungement Reform

The Financial Industry Regulatory Authority (FINRA) is set to issue a regulatory notice pertaining to cryptocurrency as well as expungement reform.

January 21, 2022
CFP Board Establishes New Appeals Commission

The Certified Financial Planner (CFP) Board of Standards has established a new Appeals Commission. As the name suggests, the Appeals Commission possesses the sole authority to adjudicate appeal hearings.