Fired client retaliates

By Staff | September 6, 2011 | Last updated on September 6, 2011
1 min read

Reading arbitration proceedings can be very entertaining.

A Financial Industry Regulatory Authority arbitration in which allegations of account churning were dismissed against an RBC broker shows the advantages of showing up to your own hearing.

The claimant sought $25,000 in damages from the broker, but failed to put in appearance at the hearing that was heard by a single FINRA arbitrator.

The respondent, by contrast was well prepared and able to show that the claimant had paid $2,100 in fees during the time in question, a low ratio cost given the average account size of $373,574.

It was also demonstrated that the client maintained control over the account, approved all trades, and that the asset composition of the account was in line with the balanced/conservative risk requirements of the claimant. staff


The staff of have been covering news for financial advisors since 1998.