FINRA arbitration isn’t just for customer disputes. As DSA found, over half of FINRA arbitrations are non-customer related. A large portion of the non-customer disputes occur when Associated Persons sue their current or former broker/dealer employer. Allegations in Associated Person vs Member Firm cases often include: defamation, reformation of U-5, wrongful termination and compensation disputes. DSA has found 94 such published arbitration awards through May 2014. Twenty of the lawsuits also involved counter-claims.
Top Five Named Respondent Firms
- Wells Fargo Advisors
- Morgan Stanley Smith Barney
- Merrill Lynch
- Citigroup Global Markets