Posts Tagged ‘FINRA’

FINRA Arbitration Statistics – February 2011

Written on March 27th, 2011 by Jason M. Kueserno shouts

FINRA recently reported its February 2011 arbitration statistics. For the two-month period ended February 28, 2011, 837 claims were filed. This represents a decrease of 9% as compared to the number of cases filed in February 2010 (918).


The number of securities arbitration cases that closed during the first two months of 2011 increased by 16% (957 compared to 828 as of February 28, 2010). However, the average turnaround time for cases that go to an arbitration hearing also increased to 14 months from 11.8 months (16%). Approximately 19% of closed arbitration cases were decided by arbitrators, while 81% were settled (through negotiation or mediation), withdrawn, or closed for other reasons.


The most frequent securities and investment related claims involved in arbitration continue to be breach of fiduciary duty, misrepresentation (fraud), negligence, breach of contract, and suitability. Mutual funds and common stock also remain the most common type of securities involved in arbitration claims.


Investors have also prevailed in a larger percentage of cases decided (by arbitration hearing or on papers submitted by the parties). For the two-month period ended February 28, 2011, 91 cases had been decided and investors prevailed in 46 (51%) of those cases. This is good news for investors as it shows a continued trend in securities arbitration awards being issued in favor of investors. It is also the first time in recent years where the percentage of arbitration claims resolved in favor of investors exceeds 50%. This percentage also does not include cases that settled in favor of the investor, which FINRA notes to be approximately 76% in 2010.


The Kueser Law Firm represents investors in securities arbitration. If you feel that your investments have been mismanaged, please contact a securities fraud attorney to discuss your rights. If you would like to contact The Kueser Law Firm, please visit e-mail or call the firm at (816) 374-5865 to discuss your rights.

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FINRA Arbitration Statistics – December 2010

Written on February 1st, 2011 by Jason M. Kueserno shouts

FINRA recently released its arbitration statistics for the month/year ended December 2010.

For the year, there were 20% fewer cases filed (5,680 v. 7,137 in 2009) and there were 6,241 cases closed (a 37% increase over 2009). Of these cases, 22% were resolved by arbitration hearing, 52% were resolved by direct settlement between the parties, 10% were resolved through mediation, and 16% of cases were either withdrawn or resolved through “other” method.

Results for investors also improved in 2010, as 47% cases that were decided by an arbitration panel resulted in an award of damages to the customer. This reflects a 2% increase over the results in 2009, and a 10% increase compared to arbitration claims decided by arbitration panels in 2007 — the worst year, for investors, in arbitration claims over the past six years.

The overall turnaround time for cases closed during the year also increased to 12.7 months (from 11.5 months in 2009). For cases that are resolved after an arbitration hearing, the turnaround time increased to 15 months (from 14 months in 2009).

The most common claims in arbitration were: (1) Breach of Fiduciary Duty; (2) Negligence; (3) Fraud/Misrepresentation; (4) Failure to Supervise; and, (5) Breach of Contract. The most common type of securities involved in arbitration claims were mutual funds and common stocks.

The Kueser Law Firm represents investors in securities arbitration. If you feel that your investments have been mismanaged, please contact the firm to discuss your rights.

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FINRA Securities Arbitration Statistics – September 2009

Written on November 8th, 2009 by Jason M. Kueserno shouts

FINRA recently reported its September 2009 arbitration statistics. As of September 30, 2009, 5,545 claims were filed, compared to only 3,471 as of September 30, 2008, an increase of 60%. FINRA also reported that 3,196 cases were closed through September and that the average turnaround time for cases that go to an arbitration hearing has declined by 9% (14.5 months from 16.0 months).

The most frequent claims/controversies involved continue to be breach of fiduciary duty, misrepresentation/fraud, negligence, and breach of contract. Mutual funds and common stock also remain the most common type of securities involved in arbitration claims.

Investors have also prevailed in a larger percentage of cases decided (by hearing or on the papers). As of September 30, 2009, 444 cases had been decided and investors prevailed in 203 (46%) of those cases. This represents a 1% increase over last month and continues to demonstrate that arbitration results are moving more in favor of investors/Claimants. Given that 3,196 cases have closed as of September 30, 2009, these statistics also demonstrate that a large number of arbitration claims are settled.

The Kueser Law Firm represents investors in securities arbitration. If you feel that your investments have been mismanaged, please contact our firm to discuss your rights.

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FINRA reports that it will expand Public Arbitrator Program

Written on October 14th, 2009 by Jason M. Kueserno shouts

On October 5, 2009, FINRA reported that it will expand its “pilot” program that allows investors who file eligible claims to select an arbitration panel that consists of three “public” arbitrators, rather than the traditional panel comprised of two “public” arbitrators and one “non-public” arbitrator.

To accomplish this, FINRA has expanded the program to include cases against the following 14 broker-dealers (from 11 broker-dealers):

  • Chase Investment Services (10 cases);
  • Oppenheimer & Co. (15 cases);
  • Raymond James Financial Services/Raymond James & Associates (10 cases);
  • Citigroup Global Markets (60 cases);
  • Merrill Lynch (60 cases);
  • Morgan Stanley Smith Barney (60 cases);
  • UBS Financial Services (60 cases);
  • Wells Fargo Advisors (60 cases);
  • Ameriprise Financial Services (18 cases);
  • Charles Schwab (10 cases);
  • Edward Jones (18 cases);
  • Fidelity Brokerage Services (10 cases);
  • LPL Financial (10 cases); and
  • TD Ameritrade (10 cases)

The investor who files the claim has the option having their claim participate in the program, which concludes on October 5, 2010.

FINRA is using the program to evaluate a number of factors, including the results of cases decided by all public arbitration panels, as well as the number of investors who elect to have their case participate in the program. To date, FINRA reports that investors have filed 474 eligible cases and that 51% of investors in those cases have elected to participate in the program.

The Kueser Law Firm represents investors in securities arbitration. If you feel that your investments have been mismanaged or if you have general questions about your mutual funds, stocks, bonds, or other investments, please contact our firm to discuss your rights.

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FINRA Arbitration Claims – August 2009

Written on October 14th, 2009 by Jason M. Kueserno shouts

FINRA recently reported its August 2009 arbitration statistics. As of August 31, 2009, 4,991 claims were filed, compared to only 3,018 as of August 31, 2008. This represents an increase of 65% year over year. FINRA also reported that 2,817 cases were closed through August and that the average turnaround time for cases that go to an arbitration hearing has declined by 10% (14.5 months from 16.1 months).

Despite this significant increase in cases filed, FINRA also reported that there has been only a slight (1%) increases in cases being mediated. In addition, 11% fewer cases were resolved through mediation (420 cases as of August 31, 2009 compared to 472 cases as of August 31, 2008).

As of August 31, 2009, there have been 9 more cases filed than during the entire 2008 calendar year. The most frequent claims/controversies involved continue to be breach of fiduciary duty, misrepresentation/fraud, negligence, and breach of contract. Mutual funds and common stock also remain the most common type of securities involved in arbitration claims.

Investors have also prevailed in a larger percentage of cases decided (by hearing or on the papers). As of August 31, 2009, 396 cases had been decided and investors prevailed in 178 (45%) of those cases. This represents the largest percentage of cases decided in favor of investors since 2004, when investors prevailed in 47% of such cases. Given that 2,817 cases have closed as of August 31, 2009, these statistics also demonstrate that a large number of arbitration claims are settled.

The Kueser Law Firm represents investors in securities arbitration. If you feel that your investments have been mismanaged, please contact our firm to discuss your rights.

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Securities Arbitration In the News – Could Arbitration Help You Recover Investment Losses?

Written on September 23rd, 2009 by Jason M. Kueserno shouts

US News & World Report published an article today written by Rob Silverblatt. The article was entitled “Could Arbitration Help You Recover Investment Losses.” The author interviewed several attorneys who practice in the area (unfortunately, the author of this blog was not one of them) and discussed patterns and trends in securities arbitration filings. The article also noted the fact that concerns related to the arbitration process have caused politicians to push the Arbitration Fairness Act (AFA) through Congress. The AFA would nullify mandatory arbitration provisions in contracts between investment firms (as well as other companies) and their customers.

The timing of this article is hardly coincidental. Over the past few years, consumers and investors have fallen victim to a scourge of Wall Street initiated hardship. Unlike the dotcom collapse that occurred earlier in the decade, losses have occurred across the board, including investments marketed as “conservative” or “cash equivalents.” From auction rate securities, collateralized mortgage obligations, and unprecedented losses in bond funds, investors have had few places to turn. In addition, as the stock market plunged from late 2007 to early 2009, investors who were in stocks suffered substantial losses. Those who were sold inverse and leveraged ETFs lost even more.

The Kueser Law Firm represents investors in securities arbitration. If you are concerned that your investments have been mismanaged, contact us to learn more about your rights.

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Securities Arbitration Claims Rise by 65% from 2008

Written on September 21st, 2009 by Jason M. Kueserno shouts

Helen Kearney, of bankinvestmentconsultant.com recently reported that as of August 2009, more arbitration claims had been filed than in all of 2009. Although there was a slight downturn in the number of claims filed in August, it is unclear whether this trend will continue.

In large part, the number of claims will likely depend on what happens in the markets over the next few months. In addition, there are different types of investments that have been the subject of significant arbitration claims, including auction rate securities and other cash-equivalent funds. Some of these investments have also been the subject of regulatory investigations and settlements. The outcome of those pending investigations could impact the number of cases filed during the remainder of the year.

If you have concerns about the manner in which your investments have been managed, or if you are worried that an investment you own may not be what you thought you had invested your money in, you should contact an attorney to discuss your rights. The Kueser Law Firm represents individuals in securities arbitration. Feel free to contact us if you would like more information.

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FINRA Dispute Resolution Estimates 56% Increase in Arbitration Claims in 2009

Written on July 30th, 2009 by Jason M. Kueserno shouts

According to the Financial Industry Regulatory Authority (FINRA), securities arbitration claims are on the rise in 2009. In fact, according to FINRA’s June Summary Arbitration Statistics, the self-regulatory organization anticipates that 56% more cases will be filed during the year, as compared to 2008 and that during the first six months of 2009, 82% more cases had been filed as during the same period in the previous year. During this same period, FINRA reports that fewer cases are going to mediation.

FINRA also reports that cases are being turned around in a shorter amount of time in 2009 as compared to 2008 and 2007. As of June 2009, the average overall turnaround time for claims filed in FINRA arbitration is 11.9 months (13.5 in 2007 and 13.2 in 2008). The turnaround time for cases that go to hearing is 14.7 months.

The most prevalent claims in securities arbitration claims are: (1) breach of fiduciary duty (4,432 claims); (2) Misrepresentation (3,530 claims); and (3) Negligence (3,404 claims). The most common securities at issue in arbitration claims are mutual funds (892 claims) and common stock (689 claims).

The results of securities arbitration claims have also been more favorable for investors/claimants than in 2008. However, Claimants still prevail in fewer than 50% of all arbitration claims decided by an arbitration panel. During the first six months of 2009, 138 of 298, or 46% of Claimant cases closed resulted in an award of damages to the investor. In addition, 50% of arbitration cases closed during the first six months of 2009 were settled by the parties (45% by direct settlement and 5% through mediation).

The Kueser Law Firm represents investors in securities arbitration. If you feel that your investments have been mismanaged, please contact our firm to discuss your rights.

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