FINRA Dispute Resolution Statistics

Friday, December 18, 2015

I'm sharing a few observations on FINRA's dispute resolution statistics (through October, 2015), which are worth a look here

  • 80% of cases mediated through FINRA in recent years are settled;
  • 15% fewer customer cases were filed in 2015 as compared to 2014;
  • the average time to hearing is 17.6 months, but about half that time in simplified decisions (for smaller cases);
  • breach of fiduciary duty is the #1 type of controversy in each year form 2011-2015;
  • municipal bond funds have been the #1 security in customer disputes (thanks in large part, no doubt to Puerto Rican bonds) in 2014-2015, but prior to that time municipal bond funds were nowhere close to the top of the list;
  • a steady 18-19% of cases have been decided by hearing from 2011-2015;
  • recent statistics (2015) show that customers win about half the time, but FINRA does not report more information that might shed light on why some customers win and others do not (such, as, whether the customer appeared with or without an attorney -- presumably the win rate is much lower for customers representing themselves).

New Hampshire Adopts Uniform Securities Act - Effective January 1, 2016

Monday, December 14, 2015

On July 27, 2014 New Hampshire’s Governor signed into law a new Uniform Securities Act. The new Act repeals and replaces New Hampshire’s current Uniform Securities Act which is based on the 1956 model securities act. The new Act is based on the Uniform Securities Act of 2002, drafted by the Uniform Law Commission of the American Bar Association, which is a model statute designed to guide each state in drafting its state securities law.

The new Act goes into effect on January 1, 2016 and is intended to simplify and facilitate capital-raising by small-and medium-sized companies, better align securities offering rules with regulatory interests, update and clarify securities compliance requirements, and preserve and enhance investor protections. It is also expected to eliminate any disincentives for companies to operate in New Hampshire and bring consistency between New Hampshire securities law and the securities law of many other states.

A link to the new Securities Act is here.