SEC Tightens Limits for FINRA

Posted on March 17th, 2015 at 4:25 PM
SEC Tightens Limits for FINRA

From the Desk of Jim Eccleston at Eccleston Law LLC:

The SEC has approved a FINRA proposal that would restrict more individuals in the securities industry from serving as public arbitrators.

Under the rule, anyone who has worked in the financial industry at any point in his or her career would be classified as a nonpublic, or industry arbitrator. Under current rules, such individuals can be reclassified as public arbitrators five years after leaving the industry.

In another big change, the rule would move from the public to nonpublic arbitrator rolls anyone who has devoted 20% or more of his or her time to representing investors in security claims over the previous five years, allowing them to re-enter the public roster after a five-year cooling off period. But if they’ve been a plaintiff’s attorney for more than 15 years, they are permanently disqualified as a public arbitrator.

The new rule also would disqualify attorneys, accountants and other professionals who have worked for financial firms for more than 20 years as a public arbitrator. If their career has spanned less than that amount of time, they can re-enter the public roster five years after ending their service for financial firms, up from the current two-year look back. 

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.

Related Attorneys: James J. Eccleston

Tags: SEC, FINRA, James Eccleston, Public Arbitrators

Return to Archive

TESTIMONIALS

Previous
Next

Hiring Eccleston Law has been one of the best career decisions I have made and this "investment" to maintain my sterling regulatory record has been returned many times over.  If you are in a situation where you've been unfairly accused, don't hesitate to talk with Eccleston Law. They are the best.

Thomas C.

LATEST NEWS AND ARTICLES

October 27, 2021
Former LPL Advisor Suspended For Completing 22 Trades Absent Client Consent

The Financial Industry Regulatory Authority (FINRA) has suspended and fined a former LPL advisor who allegedly completed 22 trades on behalf of a client without obtaining written consent. FINRA has issued a $5,000 fine and has suspended Michael Hartlett for 10 days.

October 26, 2021
Former Advisor Fails To Reverse Bar After Alleged $1 Million Theft From RBC

A former RBC Wealth Management advisor lost his bid to reverse an industry bar, according to an appellate decision issued by the Financial Industry Regulatory Authority (FINRA).

October 25, 2021
Firms Walk Thin Regulatory Line In Referring Self-Directed Clients To Advisors

While online trading platforms have surged in popularity during the pandemic, brokerage firms view self-directed investors as a source of new clients.