Financial Industry Regulatory Authority News

California Adviser Ordered to Pay $3.7M Defamation Claim by Ex-Employees

A California wealth adviser must pay two ex-employees almost $3.7 million for allegedly defaming them, a securities arbitration panel found. The Financial Industry Regulatory Authority arbitration panel ruled in favor of Corey Casilio and William Leitch, who claimed that John …

Schwab Ends Fight to Require Customers Sign Class Action Waiver

Charles Schwab Corp. has dropped a fight to require customers to waive their rights to participate in class action lawsuits, the company said on Thursday. Schwab, the San Francisco-based pioneer discount brokerage, has agreed to pay $500,000 to the Financial …

SEC Proposes Fiduciary Duty for Investment Brokers Advising Retail Clients

Investment brokers advising retail customers should be held to a standard that requires them to recommend products that are in the best interest of clients, according to a proposal from a group advising U.S. regulators. Members of the Securities and …

Brokerage Firm Fined $9M for Email Violations, Misstatements

LPL Financial LLC must pay a total of $9 million for significant email system failures and making misstatements to Wall Street’s watchdog, the regulator said on Tuesday. LPL, an affiliate of LPL Financial Holdings Inc., agreed to a fine of …

Schwab Temporarily Drops Client Class Action Waiver

Charles Schwab Corp. has temporarily reversed its requirement that clients waive their right to bring class-action lawsuits, adding a new twist in a battle closely watched by the securities industry and plaintiffs’ attorneys. “Effective immediately, Schwab is modifying its account …

SEC Regulator Urges Ban on Mandatory Arbitration Agreements by Investment Firms

A top U.S. securities regulator on Tuesday urged the government to consider adopting new rules that would prohibit or restrict brokerages and advisers from forcing customers to sign away their right to sue. “By providing investors with the ability to …

Ex-Merrill Broker, Deutsche Bank to Pay Investor $11 Million

U.S. securities arbitrators ordered a former employee of Merrill Lynch, Deutsche Bank and Oppenheimer & Co. to pay nearly $11 million to an investor who alleged the broker misrepresented securities and made excessive trades. The investor’s case against former broker …

SEC Approves Nasdaq Deal for Facebook IPO But Lawsuits Could Follow

U.S. regulators approved Nasdaq OMX Group’s $62 million compensation plan for firms that lost money in Facebook Inc.’s glitch-ridden market debut, a victory for the exchange operator that also set the stage for potential lawsuits from firms seeking more. The …

Securities Regulator OKs Schwab Ban on Class Actions by Clients

Charles Schwab Corp. can ban its clients from bringing class action lawsuits, a securities industry regulatory panel ruled Thursday in a sweeping decision that is likely to influence other U.S. brokerage firms to follow Schwab’s policy. Schwab last year told …

Deutsche Bank, Ex-Adviser Ordered to Pay $934K for Insurance Swindle

U.S. securities arbitrators ordered Deutsche Bank Securities Inc. to pay a couple and their trusts a total of $934,000 after a onetime adviser allegedly swindled them in a multimillion-dollar insurance deal. The ex-adviser, Karl Hahn, is equally responsible for the …