2024- No. 2024-02

RECENT NEWS FROM THE ARBITRATION FRONT

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 2021-2024 back issues of the Alert can be downloaded free of charge here.)

SEC SOLICITS COMMENTS ON “UN-APPROVED” FINRA CHANGES TO NON-ATTORNEY REP RULE. The SEC is seeking public comments on the temporarily walked back January 2024 approval of FINRA’s proposal to amend the non-attorney representation rules. We borrow liberally from our past reporting. READ MORE

CFPB ISSUES WARNING ON DECEPTIVE CONTRACT TERMS, INCLUDING ARBITRATION. The Consumer Financial Protection Bureau (“CFPB”) on June 4 issued a circular warning on the use of deceptive terms in contracts for consumer financial products or services, with arbitration featured as a prime example. READ MORE

NEW DOL FIDUCIARY RULE IS FINAL. The Department of Labor’s (“DOL”) final fiduciary rule has been published; it goes into effect September 23. We borrow heavily from our previous reporting. READ MORE

EXPERT OPINIONS: WHAT ARE THE COURTS (AND ARBITRATORS) THINKING?

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 2021-2024 back issues of the Alert can be downloaded free of charge here.)

Coinbase v. Suski, No. 23-3 (May 23, 2024). In the third unanimous decision of the term, SCOTUS holds in Coinbase v. Suski, No. 23-3, that under the Federal Arbitration Act (“FAA”), courts, not arbitrators, decide whether a delegation agreement or conflicting forum selection clause applies. READ MORE 

Hohenshelt v. Superior Court, No. B327524 (Calif. Ct. App. 2 Feb. 27, 2024). The California Supreme Court has agreed to review a case on FAA preemption of California Code of Civil Procedure sections 1281.97 and 1281.98. READ MORE

Hayes v. Aegis Capital, FINRA ID No. 22-02854 (Cleveland, OH, May 24, 2024). An All-Public Panel dismisses with prejudice a group of customers' claims against Respondent broker-dealer and imposes monetary sanctions in the form of attorney fees pursuant to FINRA Rules 12212(c) and 12511 for their intentional disregard and failure to comply with the Panel's Orders regarding the production of discovery in this matter. READ MORE

MEMBER ACHIEVEMENTS - BRINGING CREDIT TO THE PROFESSION

Contributor: Patti Koetting (pkoetting@gmail.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 our members.)

SER's Colleen Diles moderated an informative webcast titled, "It's Not Just AML" on Anti-Money Laundering with members Ross Delston, David MacNair, and Catherine Mustico on April 18th. They covered a range of topics including AML pillars for broker-dealers and investment advisors, financial crimes, and the current regulatory environment. READ MORE

SER member Jeffrey Estella was a special guest on a recent "At the Forefront: Fintech Conversations" podcast episode, and moderated a virtual panel from CAPIS about outsourced trading. READ MORE Learn about his contribution to an article in Trader's Magazine HERE.

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.

Terrence Travis has over 35 years of experience in the securities industry, as a highly specialized risk manager with expertise in managing risk across various asset classes, including equities, futures, and options, as well as in portfolio management, risk practices, and model development. Having led a global team at Goldman Sachs and currently managing a proprietary trading firm and hedge fund, he has developed and deployed numerous risk and margin methodologies.

Richard Chen is a seasoned corporate and securities attorney with more than 25 years of practice working at top New York law firms following his graduation from Harvard College and Harvard Law School. He is the Founder and President of Brightstar Law Group, and specializes in regulatory and corporate legal services for investment advisory firms, including compliance, SEC examinations, firm structuring, commercial contracts, mergers, and private fund launches, and also regularly contributes to industry publications and conferences.

William Wright has extensive experience in conducting sales practice and financial examinations of FINRA member Broker/Dealers which collectively includes 17 years serving as a Principal Examiner with the FINRA District Offices in Washington, DC and Los Angeles, CA. His areas of expertise involved complex investments including private placements, structured products, derivatives, ETF's, mutual funds, and variable insurance products and with extensive experience dealing with institutional and retail registered investment advisors.

Robert Lowry has been providing securities expert witness services since 1996 for public companies, investors, broker dealers, investment advisers, state and federal regulatory agencies and the Department of Justice. He has 40 years of experience in the industry, including 23 years with the SEC, where he was responsible for conducting regulatory examinations and participating in enforcement matters, and has deep knowledge of the federal securities laws and regulations, accounting practices, capital formation, and the customs and practices of the securities industry.

SER ACTIVITIES-WHAT'S CIRCLING AT THE ROUNDTABLE?

Contributors:  Patti Koetting (pkoetting@gmail.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.)

2024 Annual Membership Meeting & Conference

Washington D.C. on July 26-27, 2024

Only three weeks away from the Annual Conference and we thrilled to report that member registrations are approaching record highs including several new members and first time attendees! With a packed agenda, the majority of guest speakers will also be joining us for Friday night's dinner. Additional invitations are going out to attorneys and mediators to join our Saturday Night Dinner. Our room block at the Sofitel expires Friday July 5th and is almost at capacity. If you plan to attend and have not already registered, do so asap!

Thank you to this year's Sponsors to Date!

Platinum

Gold

Sponsorships Still Available! Whether or not you plan to attend, consider a sponsorship to support SER and raise your profile. Levels range from $250-$1500 for members and non-members. For more information, visit our Sponsor page or contact Patti Koetting at pkoetting@gmail.com or 919-967-9040.

PRACTICE MANAGEMENT TIPS!

Contributors: Rotating Practice Management Committee Members

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

Telling the Truth

by SER Member Bob Lawson (blawson@barrington-inc.com)

The single most important thing for any Securities Expert Witness to do at a deposition is to tell the truth, simply, and directly. This is absolutely critical because as an expert witness, we have a legal, moral, professional, and ethical obligation to tell the truth. If you tell less than the truth, you run the risk of criminal prosecution for perjury, civil suits for negligence, sanctions from professional associations, and the potential revocation or suspension of your professional licenses.

If an expert witness lies, embellishes, or does not tell the truth, it will eventually be exposed, and your testimony will be discredited and there is a chance your career as an expert witness will be short lived. If, however, you call the cases as you see them and state your truthful answers as artfully as possible, the odds of a successful career as a securities expert witness are in your favor. 

STATISTICS, EVENTS & RESOURCES

Contributor: Patti Koetting (pkoetting@gmail.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.)