Why do so many managers and supervisors complain about their supervisory duties? How many times have you heard a supervisor grumble and complain about attorneys who file arbitration claims against “innocent” stockbrokers? How innocent was Frank Gruttadauria, who allegedly defrauded his clients over a 15-year period? Face it, supervision starts at the top. (more…)

Assume you have gone through an arbitration, lost, and think you should appeal the decision. Rule 10330(b) of the NASD Code of Arbitration Procedure states: “Unless the applicable law directs otherwise, all awards rendered pursuant to this Code shall be deemed final and not subject to review or appeal.” You now have thirty days to pay the award, or file a petition to vacate the award.

Not to worry. The Federal Arbitration Act, 9 U.S. 10 provides for the vacation of arbitration awards under the following circumstances; (more…)

NASD Manual Rule 10301(a) requires every member firm to arbitrate any dispute with a customer if demanded by the customer. Since Shearson demanded the enforcement of arbitration clauses in the case of Shearson/American Express, Inc. vs. McMahon, the courts practically have enforced arbitration clauses when customers have filed lawsuits in the court systems. If you think this is a good idea, keep reading. (more…)