FINRA Arbitration Experience?

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Topic Author
CashConfessions
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Joined: Sun Apr 02, 2017 10:24 pm

FINRA Arbitration Experience?

Post by CashConfessions »

Hello,

Does anyone have experience with FINRA's arbitration services (https://www.finra.org/arbitration-mediation/overview), or any guidance as to how the arbitration process works?

I have an issue related an an inherited account where the broker-dealer failed to answer questions/facilitate the transfer of securities in a timely fashion, and I am now stuck in an inherited non-liquid REIT whose board has now suspended the share redemption program for any reason--including the death of the original account holder. The amount in question is in the high-five figures.

Thanks for any feedback you can provide.
SeaDog
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Re: FINRA Arbitration Experience?

Post by SeaDog »

I filed a FINRA complaint against a ML branch manager for several reasons. FINRA turned it over to a ML office responsible for investigating FINRA complaints against ML. He sent me a nice letter that failed to address the conduct and actions that necessitated the complaint. The last line stated the matter was considered closed and to call another individual at ML if I had any questions. I ultimately decided not to respond because I had wasted enough time with ML.

At the same time I had filed a complaint with the Certified Financial Planner board. They have taken the complaint seriously and have provided updates to the ongoing investigation.

Seems like if someone advertises they are CFP certified then CFP really wants them to abide by the CFP code of conduct. That is the impression I have gotten so far anyway.
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retired@50
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Re: FINRA Arbitration Experience?

Post by retired@50 »

SeaDog wrote: Mon May 23, 2022 7:38 am I filed a FINRA complaint against a ML branch manager for several reasons. FINRA turned it over to a ML office responsible for investigating FINRA complaints against ML...
Notice the conflict of interest here... :shock: ML investigates ML. Wow.

OP, I wish you luck, but I have nothing to add except read everything before signing...

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
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Nate79
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Re: FINRA Arbitration Experience?

Post by Nate79 »

CashConfessions wrote: Sun May 22, 2022 9:33 pm Hello,

Does anyone have experience with FINRA's arbitration services (https://www.finra.org/arbitration-mediation/overview), or any guidance as to how the arbitration process works?

I have an issue related an an inherited account where the broker-dealer failed to answer questions/facilitate the transfer of securities in a timely fashion, and I am now stuck in an inherited non-liquid REIT whose board has now suspended the share redemption program for any reason--including the death of the original account holder. The amount in question is in the high-five figures.

Thanks for any feedback you can provide.
I'm just curious what the time period was for how long the broker failed to act?
Topic Author
CashConfessions
Posts: 148
Joined: Sun Apr 02, 2017 10:24 pm

Re: FINRA Arbitration Experience?

Post by CashConfessions »

Sorry - have been off of the site for a while and just saw this. It was about 14 days.

Not a major issue (normally), but it was bad under these particular circumstances.
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nisiprius
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Re: FINRA Arbitration Experience?

Post by nisiprius »

A tangential note.

I was in a situation involving an inherited non-traded REIT. I found that there are companies in the business of, well, trading non-traded REITs. The various brokers and advisors involved talked them down ("bottom feeders,") were unhelpful about the whole situation (foot-dragging, promises to find out and get back to me with answers and didn't, etc).

When I contacted shareholder relations for the REIT itself, they sent me letter with a paragraph of disclaimers ("not a recommendation" etc). and the contact information of five or six firms that were willing and able to take the non-traded REIT off my hands and pay me money for it.

We approached one firm and as you might expect they were almost too agreeable and helpful. Did all the work, and the amount we were eventually paid was within reasonable accord of the quote they had given us. We got quotes from IIRC two of these firms and they both in the same ballpark. My assumption is that we probably got maybe 50%-66% of the "true" value of the REIT. I didn't ask any questions and I have avoided trying to find out if we were rooked any worse than I assume.

All I am saying is that these firms do exist, and the actual office of the specific REIT itself can probably put you in touch with them.

Actually there were two non-traded REITS. Believe it or not, the departed had bought two of them, from two different firms, and both of them went sour. I wonder if that happens a lot?
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
Rex66
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Re: FINRA Arbitration Experience?

Post by Rex66 »

If I recall correctly, years ago it was shown that if the finra panel voted against the advisor, they weren’t used again.

I did not find finra helpful personally
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