Reg Bi – Have Arbitrations Changed in the Wake of the New Standard of Care
Reg Bi – Have Arbitrations Changed in the Wake of the New Standard of Care
Peter Tepley joined a panel discussion during the PLI Securities Arbitration 2024 Seminar on Thursday, September 12. The discussion explored whether this new standard of care has changed arbitration in the FINRA forum. Topics of discussion included:
- Arbitration Statistics: Are cases being filed? Are cases being heard?
- Enforcement Overview: FINRA and SEC Enforcement Actions
- Suitability and Reg BI: How are cases (both arbitration and enforcement) handling conduct that span both suitability and Reg BI?
- How cases will be pled and defended, focusing on the new elements of Reg BI (consideration of reasonably available alternatives and costs; disclosure; assessment and handling of conflicts of interest)?
- What can we learn from FINRA’s 2024 Annual Regulatory Oversight Report?
- What’s next with Reg BI claims?
Key takeaways included:
- The number of FINRA customer arbitrations containing claims for violations of the SEC’s Regulation Best Interest continues to rise.
- Firms and their associated persons need to be fulfill their care obligations under Regulation Best Interest and because claims concerning a recommendation can occur years after it was made, they also need to document what they did to determine that there was a reasonable basis to believe that each of their recommendation to a retail customers was in that customer’s best interest and did not place their interests ahead of the customer’s interest.
The panel moderator was Christine Lazaro and panelists included Hugh D. Berkson, Alicia Goldin, Peter J. Tepley.
About the PLI Securities Arbitration 2024 Seminar
The full day of programming featured FINRA Dispute Resolution leadership and arbitrators, as well as noted academics and experienced attorneys who represent both customers and the industry. The speakers provided practical tips for arbitrating and mediating securities cases and discuss ethical challenges involved in the presentation of documents and witnesses during arbitrations. They explored DEI in the wake of Students for Fair Admissions v. Harvard. Finally, they discussed the latest hot topics and future trends in securities arbitration for 2024.
