Arbitrating Securities Claims: A Basic Guide for Lawyers

The investment markets today are vastly different and more complex than ever before. The traditional stockbroker is an anachronism and individual stocks and bonds no longer dominate investor portfolios. Instead, “Financial Advisers” recommend a spectrum of investment products such as mutual funds, ETFs, private placements, and deferred annuities. Portfolio Allocation has replaced active management and fee-based accounts monetize formerly inactive assets. The consequence of this transition is that securities claims today focus heavily on investment products and services requiring risk analysis well beyond mere market analysis. Over the past 10 years the stock market has risen sharply from its lows in 2009, and these gains have masked losses caused by the costs, fees, and limitations in many investment products that impair returns.  

Securities Arbitration, the forum for customer disputes, no longer centers on stock prices. Rather it is faced with complex, costly, and risk obscured services or products that require unwinding with expert support. Traditional Damage models are inadequate to quantify the losses over time based on factors unrelated to stock performance. This program, taught by Frederick Rosenberg, a retired attorney with over 40 years of experience as a FINRA Principal, an Examiner-in Charge of Bank Trust and Brokerage credit-audits,  a sole practitioner representing claimants in Arbitration, and a forensic expert in securities arbitration, will provide a basic introduction to Securities Arbitration in 2019, including all phases of a Securities Claim in an era of investment products and financial planning.

Learning Objectives:

1. Assess a securities claim
2. Discuss eligibility and securities rules and regulations
3. Review arbitration and mediation procedures
4. Draft a statement of claim
5. Assess liabilities
6. Grasp the available defenses
7. Draft motions and use experts effectively
8. Calculate damages using different methodologies