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Contributor: George H. Friedman (George@SecArbAlert.com)

(ed: This column follows recent items of interest to securities experts and relating to arbitration practice. 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, 2022, and YTD 2023 back issues of the Alert can be downloaded free of charge here.)

SEC APPROVES FINRA’S RULE CHANGE PROPOSAL IMPLEMENTING “RIGGED PANELS” INVESTIGATION REPORT RECOMMENDATIONS. The SEC has approved FINRA’s rule change proposal to implement recommendations resulting from the outside investigation of allegations that the arbitrator selection process was rigged. READ MORE

FINRA ISSUES LONG-AWAITED REGULATORY NOTICE ON THE HIGHLY RESTRICTIVE 2023 EXPUNGEMENT RULE CHANGES. The Notice announces an effective date of October 16, 2023 for the new, restrictive rules, beginning a countdown for the last chance to preserve the opportunity to expunge many customer complaints from the Central Records Depository (CRD). READ MORE

CONSUMER ADVOCATES TO CFPB: WRITE RULE EMPOWERING CONSUMERS TO CHOOSE ARBITRATION POST-DISPUTE. A coalition of leading consumer advocacy groups has petitioned the Consumer Financial Protection Bureau (“CFPB”) to promulgate a rule allowing financial consumers the option to arbitrate after a dispute arises. 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 factfinder, 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, 2022, and YTD 2023 back issues of the Alert can be downloaded free of charge here.)

Argent Trust Company v. Harrison, No. 23-30, and others: The Supreme Court was back in session on October 2. Here are some arbitration-centric cases worth tracking, as suggested by SCOTUSBlog. READ MORE

Adolph v. Uber Technologies, Inc., No. S274671 (Calif. Jul. 17, 2023). The California Supreme Court has ruled unanimously that, even though a California Private Attorney General Act (“PAGA”) Plaintiff’s individual claims have been referred to arbitration, they have standing to assert representative claims. READ MORE

Han v. J.P. Morgan Securities, LLC, FINRA ID No. 18-02978 (New York, NY, July 7, 2023): A registered representative won a big award of monetary damages against his former employer from a majority of a three-member FINRA arbitration panel, but the only arbitrator to offer an explanation strongly disagreed with the decision to award any damages. READ MORE

Contributor: Patti Koetting (pk@pkoetting.com) 

(ed: SER’s Committees are composed of two Board Members, and most have one or more members at large. Our Committees and members are listed under the “About Us” button on our Home Page.)

Over 40 SER members, registered guests and guest speakers attended the 2023 Annual Conference. New members and first time attendees were treated to breakfast with out-going President Alan Besnoff, incoming President Bob Graham and Membership Chair Paul Carroll. This year's agenda included a mix of member panels and outside speakers and special breakout workshops in smaller group settings. For the first time in 31 years, SER broadcast a portion of the conference live to the public. Close to 100 industry attorneys and professionals registered for the session titled "Reg BI, Business as Usual or Meaningful Change?" Click below to for the full conference recap and to access the Reg BI recording!

Much appreciation to Peter Bulger, Kerry Campbell, Paul Carroll, Jerry DeNigris and Gordon Yale, for donating their time and effort over the the years serving on the Board of Directors. Paul Carroll is a Past President from 2021-2022. Gordon Yale is a Past President from 2010-2011, and again from 2018-2019. Directors are also selected to serve as the Chairs of the various Committees that provide the many benefits of SER membership. Thank you for your service!

At the Annual Meeting in Boston, members approved the slate of nominees offered by the Nominating Committee and elected the following new Directors: Charles Bennett, Keith Loveland, Lori Raineri, Thomas Taliaferro and Elizabeth Falk, as President-Elect. The President-Elect serves as the Conference Agenda Chair for the following year. Ms. Falk previously served as President in 2020-2021. Directors are typically elected for a term of three years and often serve two consecutive terms. These five Directors join the seven remaining on the Board. SER looks forward to thriving under their leadership!

Contributor: Patti Koetting (pk@pkoetting.com)

SER member Colleen Diles will be a panelist at the 2023 NSCP National Conference. The event will take place in October in Dallas, Tx. The session Ms. Diles will participate on is titled, "BD LAB: Compliance Testing and Surveillance: Regulatory Expectations".

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.

Jessica Murray has over 20 years of experience in the investment and insurance industries currently serving as Chief Compliance Officer for multiple affiliated RIAs and broker-dealers. She brings expertise in the niche product areas of alternative investments and fixed/indexed/variable annuities. Ms. Murray also offers compliance consulting services to RIAs, broker- dealers and insurance companies through American Elm Advisors, assisting in all aspects of compliance programs, application of regulatory guidance, and suitability; also providing expert witness testimony.

John Ivan is a senior executive with over 40 years of experience leading compliance and legal functions at major institutions. With a focus on Regulatory Affairs in relation to Broker-Dealer Wealth Management, Investment Advisory and other Capital Markets & Fixed Income businesses, he has extensive experience interacting with regulators, supervisory programs including selling away cases, dually-registered and independent channels, Reg BI, related fiduciary and DOL regulations, product due diligence, and FINRA & SEC Examination/Enforcement priorities and investigations.

If you have a potential member to nominate, please contact SER's Membership Chair Paul Carroll (PCarroll@sententiallc.com) or visit our Become a Member page.

Contributors: Rotating Practice Management Committee Members

(ed: Helpful tips from seasoned experts relating to operating a successful expert practice.)

by SER Member Jack Herrmann (fjherrmann123@gmail.com)

Recently a new SER member asked to have a telephone conference call with a member of the SER Practice Management Committee. The new member explained that he was focusing on building his testifying experience. We talked about using how cases are resolved as a guide to how we direct our focus. While we do not have statistics for cases in federal and state court, we do have FINRA statistics.

According to FINRA statistics through August 2023 only 16% of FINRA claims were resolved by regular arbitration hearings. Direct settlement negotiations accounted for 48% of settlements, and mediations resolved 18% of FINRA claims, together resolving 66% of all FINRA claims.

Our skills as a Consulting Expert can be valuable to help resolve disputes in direct settlement negotiations and mediation where approximately 2/3 of cases may be resolved.

An engaging Attorney may be more likely to include an Expert in direct settlement negotiations and mediations when the Expert is qualified as an Arbitrator and Mediator. SER members who participate in direct settlement negotiation and mediation report positive results, adding significant value to the dispute resolution process.

SER Directors and members of the SER Practice Management Committee welcome comments and questions from fellow members, and invite your questions anytime.

Contributor: Patti Koetting (pk@pkoetting.com)

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 2023 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.

Mission Statement: SER provides continuing professional education and promotes ethics and integrity among its members while remaining dispute neutral as an organization.

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.