Regulator rejects client complaint

By Staff | January 17, 2012 | Last updated on January 17, 2012
1 min read

An arbitration panel convened by U.S. self regulator FINRA opted to strike from the record a complaint against a UBS trader who was alleged to have ignored client instructions, resulting in economic loss.

Arbitrators did award filing fee expenses to the client ($162), but otherwise said the claimant failed to present evidence that instructions cited in the complaint were ever conveyed to the broker.

They added the complainant failed to present evidence showing the broker had discretionary authority to trade, and that the broker had in fact made attempts to work with the client to develop an investment strategy.

They therefore concluded complaints alleging monetary loss for failing to trade as instructed were not supported, and took the unusual step of removing records of the proceedings from FINRA’s Central Registration Depository – a cache of records detailing complaints against every registered U.S. broker-dealer. staff


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