The last thing you want is to lose out on a valid claim simply because of an obscure legal technicality like the statute of limitations. In some cases, they may also be brought under other federal or state laws. "I spoke to Mr Sonn on a complex legal matter. New York City NY, 10006 This case involved a dispute of the state statute of limitations and the FINRA eligibility rules. The Most Common Forms of Stockbroker Fraud, FINRA Rule 9554: Failure to Comply with an Arbitration Award. For example, if you are dealing with a lack of diversification claim, it is very likely that several different transactions, perhaps over a period of many years, went into making that claim. (F) the member's deduction of capital withdrawals, which it anticipates making, whether voluntarily or as a result of a commitment, including maturities of subordinated liabilities entered into pursuant to Appendix D of SEA Rule 15c3-1, during the next six months, (1) Except as otherwise permitted by FINRA in writing, a member that carries customer accounts or clears transactions shall not expand its business during any period in which any of the conditions described in paragraph (a)(1) continue to exist for more than 15 consecutive business days, provided that such condition(s) has been known to FINRA or the member for at least five consecutive business days. As a plaintiff, this is a worst case scenario. Required fields are marked *. No one wants to lose out on compensation due to a legal technicality. The Rule contemplates that any restrictions or conditions imposed on a carrying or clearing member's business under this Rule may require that member to restrict the business activities of one or more correspondent firms for which the member clears, insofar as such business would be handled by such carrying or clearing member. Federal and state courts enforce statutory cutoffs for commencing different kinds of claims and vary widely in length from one jurisdiction to another. (1) Except as otherwise permitted by FINRA in writing, a member that carries customer accounts or clears transactions is obligated to reduce its business to a point enabling its available capital to exceed the standards set forth in paragraph (a)(1)(A) through (F) of this Rule, when any of the following conditions continue to exist for more than 15 consecutive business days, provided that such condition(s) has … unsuitable or misleading recommendations. (F) the member's deduction of capital withdrawals, including maturities of subordinated liabilities entered into pursuant to Appendix D of SEA Rule 15c3-1, scheduled during the next six months, (2) A member must reduce its business as directed by FINRA for any financial or operational reason. Most securities fraud claims are brought under Section 10(b) of the Securities Exchange Act of 1934 or SEC Rule 10b-5 . (3) For purposes of paragraph (c) of this Rule, the term "business reduction" shall mean reducing or eliminating parts of a member's business in order to reduce the amount of capital required, which may include: (A) promptly paying all or a portion of free credit balances to customers; (B) promptly effecting delivery to customers of all or a portion of fully paid securities in the member's possession or control; (C) introducing all or a portion of its business to another member on a fully disclosed basis; (D) reducing the size or modifying the composition of its inventory and reducing or ceasing market making; (E) closing of one or more existing branch offices; (F) collecting unsecured or partially secured loans, advances, drawings, guarantees or other similar receivables; (H) restricting the payment of salaries or other sums to partners, officers, directors, shareholders, or associated persons of the member; (I) effecting liquidating or closing customer and/or proprietary transactions; (J) accepting only unsolicited customer orders; and. I'm Jeff Sonn, a securities fraud lawyer who represents investors. Remember, however, that claims against brokers and brokerage firms cannot be brought in court; they must be arbitrated. This exact same issue comes up with other common investor losses claims, such as unsuitable investment claims and excessive trading claims.