2022 - No. 2022-01
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Contributor: George H. Friedman (George@SecArbAlert.com)
(ed: These items are drawn from recent editions of the Securities Arbitration Alert, updated where necessary, and appear here with the permission of the Alert’s publisher. This issue’s column is compiled by the SAA’s publisher and Editor-in-Chief, George H. Friedman. Note that all 2021 and YTD 2022 back issues of the Alert can be downloaded free of charge here.)
FINRA DRS POSTS FULL-YEAR 2021 STATS: A DOWN YEAR BY MOST MEASUREMENTS. FINRA Dispute Resolution Services (“DRS”) posted full-year 2021 case statistics, with overall arbitration case filing trends continuing from prior months, and with mediations ending the year with a meteoric rise. READ MORE
PRESIDENT BIDEN SIGNS INTO LAW THE ENDING FORCED ARBITRATION OF SEXUAL ASSAULT AND SEXUAL HARASSMENT ACT. World events caused a bit of a delay, but President Biden on March 3 finally signed into law the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act. The Act became effective immediately. READ MORE
UPDATE ON FINRA “RIGGED PANELS” ACCUSATION: FINRA RESPONDS TO WARREN AND PORTER (AND VICE VERSA). We covered briefly in SAA 2022-09 (Mar. 10) this ongoing story, which we’ve covered extensively and blogged about on February 2, 9, and 25. Here is an elaboration.  READ MORE
Contributor: George H. Friedman (George@SecArbAlert.com)
(ed: By reading how courts and arbitrators value, view and utilize testifying experts or decide issues experts encounter on a regular basis, one can better serve the fact-finder, more effectively help the client, and more likely avoid a bad experience. For selected court decisions, we draw again from the Securities Arbitration Alert (SAA), and other resources. Note that all 2021 and TYD 2022 back issues of the Alert can be downloaded free of charge here.)
THIS JUST IN: SCOTUS DECIDES BADGEROW. Based on statutory construction, the Supreme Court has decided Badgerow v. Walters, No. 20-1143, ruling 8-1 that the “look through” doctrine does not apply to actions to confirm or vacate an arbitration award under sections 9 and 10 of the Federal Arbitration Act (“FAA”), even though it does for motions to compel arbitration under section 4. READ MORE
Morgan v. Sundance Inc., No. 21-328; ZF Automotive US, Inc. v. Luxshare, Ltd., No. 21-401, and AlixPartners LLP v. The Fund for Protection of Investors’ Rights in Foreign States, No. 21-518; Southwest Airlines Co. v. Saxon, No. 21-309; Viking River Cruises, Inc. v. Moriana, No. 20-1573 (U.S.): The Supreme Court heard oral argument the last two weeks of March in four cases involving arbitration. The eventual decisions will reshape the arbitration landscape.  READ MORE
Glenn v. Legacy Energy, AAA ID No. 01-20-0014-5763 (Jan. 7, 2022): An AAA Arbitrator rescinds an unregistered investment. READ MORE
Principal Securities, Inc. v. Agarwal, No. 20-3312 (8th Cir. Jan. 31, 2022): Unanimous Eighth Circuit in a selling away case: the purpose of FINRA Rule 12200 “is not to make a brokerage firm the insurer of failed business ventures.” READ MORE
Stephens, Inc. v. Benjamin F. Edwards Co., Inc., FINRA ID No. 17-02378 (Memphis, TN, Jan. 21, 2022): A 35-page explained decision in a raiding case resulted in an award in excess of $18 million against the respondents, but includes a strenuous dissent from one of the arbitrators. READ MORE
Contributors: SEC-Hollie Mason (hollie.mason@brattle.com) and FINRA-Jerry DeNigris (jdenigris@riversidefinancial.com)
(ed: Keeping abreast of rulemaking and other regulatory initiatives can be a full-time job. This compilation is a summary of regulatory actions and comments and is not meant to be an all-inclusive substitute for individual research via the various regulatory sites.)
SEC: On March 21, 2022, the U.S. Securities and Exchange Commission (SEC) proposed long-awaited rules that, if adopted, would require extensive reporting by public companies of climate change-related disclosures (the “Proposal”). According to the Proposal, the rules deviate from the existing “principles-based” disclosure requirements rooted in materiality in order to provide investors with consistent and comparable data.
FINRA: Today FINRA published its 2022 Report on FINRA’s Examination and Risk Monitoring Program to provide insights from FINRA’s oversight programs to FINRA member firms. The 70-page Report covers 21 different topics—including five new subjects—relevant to an evolving securities industry.

From SIFMA: Perspectives and Key Themes from Compliance and Legal Professionals SIFMA recently hosted their Compliance & Legal Annual Seminar. Access their 2022 C&L Annual Seminar Debrief.
Contributors: Rotating Practice Management Committee Members
(ed: In response to survey requests, we have added a new column to provide quick and helpful tips from seasoned experts relating to operating a successful expert practice.)
"Expert Reports that Persuade" by SER Member Jack Herrmann

Having worked on over two hundred (200) disputes involving securities and investment-related matters of all types as a Mediator, Arbitrator, Consultant and testifying Expert, I continue to work to improve my Expert’s Reports. Demands differ in mediations, before federal and state courts, securities regulators, and arbitrators, but the length of an Expert’s Report is an issue.
“Brevity earns extra points”, Attorneys tell me. I am reminded of Mark Twain’s contribution to the subject in a letter he reportedly wrote to a friend with the message, “If I had more time, I would have written a shorter letter”. I work to remind myself that writing an effective Expert’s Report takes time to:

  1. Articulate opinions and the reasons clearly
  2. Consider how the message will be received, not just about what to say
  3. Remove the fog and redundancy to present a clear message
Contributor: Patti Koetting (pk@pkoetting.com)
(ed: Whether it’s writing an article, hosting an event, joining a professional committee, or just pursuing a smart practice, we report on member's efforts here. Look to the “Newsroom” section of the SER Website for more frequent, timely reports on the activities of our members.)
SER Member Re-appointed on CFP Disciplinary & Ethics Commission
SER member and current President-Elect Alan J. Besnoff, CFP, ChFC, CLU is pleased to have recently been re-appointed by the CFP Board of Standards to serve a second term as Commissioner, Disciplinary and Ethics Commission. READ MORE
MEET OUR NEWEST MEMBERS! (Click on a name to view the full profile on SER's website, where you can also access their contact info and website. Better yet, reach out and connect to find out more about them.
Stuart Rosenthal - Mr. Rosenthal is an accomplished investments, derivatives and data analytics expert, having testified and consulted on matters involving complex portfolios, trading, derivatives, liquidations and fraud. With many years of industry experience, Stuart has worked as an options portfolio manager, trader, product development manager, entrepreneur, consultant and investment analyst, and holds a CFA designation.
Catherine Mustico - Ms. Mustico has 17 years of extensive experience in conducting sales practice examinations of FINRA member Broker/Dealers which includes eight years as an Associate Principal Examiner, with the FINRA District Offices in DC and New York. She has expertise in Anti-Money Laundering (AML), financial, and fraud investigations, AML procedures, brokerage operations and compliance requirements, as well as FINRA, Securities and Exchange Commission (SEC), and New York Stock Exchange (NYSE) regulations.
If you have a potential member to nominate, please contact SER's Membership Chair Elizabeth Falk (elizabeth@falkfinancialanalysis.com).
Contributor: Patti Koetting (pk@pkoetting.com)
(ed: This column seeks to apprise members of events, products and services that can be useful to them in their professional activities. Unless specifically stated, SER does not endorse or sponsor any of the products and services mentioned herein.)

"Getting Grandma's Net Egg Back"
April 21, 2022
via ZOOM
Noon-6:00pm eastern

Topics include State and Civil Claims and Overview of a Financial Elder Abuse Case; Compliance Supervision and Best Interests in Senior Citizen Accounts; Dealing with People with Diminished Capacity; Econimic and Non-Econmic Damages When Dealing with FINRA Arbitrations Involving Senior Citizens; and Strategies and Techniques in Dealing with FINRA Arbitrations Involving Senior Citizens.

Registration required.
PIABA Member $250
Expert/Mediator/Regulator $300

2022 FINRA Annual Conference
May 16-18, 2022
Washington, DC/ Hybrid Event

FINRA's premier event—the Annual Conference provides the opportunity for practitioners, peers and regulators to exchange ideas on today's most timely compliance and regulatory topics. The conference offers industry professionals a variety of sessions related to current trends in technology, cybersecurity, risk management and much more.

Registration required.
In person: Non-Member $2,195
(In person requires Proof of vaccination & Negative Test Result)
Virtual: Non-Member $399

July 15 - 16, 2022
University Club of Washington D.C.
(Watch for registration to open in April.)
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Final Note: The Contributors are members of the SER Public Relations Committee. They have designed this newsletter for the membership and worked to gather material for this issue. Members can help by sending Contributors information and suggestions for content in future issues. Members should also visit SER's "Newsroom" section of the Website periodically, as many of the items that appear here will be first posted in the Newsroom.
Copyright 2022 Securities Experts Roundtable - publication appears three times a year and is available as a membership benefit to experts of the Securities Experts Roundtable. Comments - suggestions welcome. Email Newsroom@securitiesexperts.org with comments.

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Disclaimer: This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. The publisher is not engaged in rendering legal, accounting or other professional service or advice. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.