This week The New York Times quoted the Securities Industry Association’s support for a consolidation of the enforcement departments of self-regulatory organizations, including the NASD and NYSE. The SIA even wants the right to have a seat on the board of this single market regulator. Read the rest of this entry »

Brokers Win $14 Million Arbitration Award

Merrill Lynch lost a $14 million arbitration in which the firm was found to have defamed three of its brokers, causing economic and other injury, by making public in an industry filing (and elsewhere) the ostensible reasons for their termination of employment by Merrill. Merrill stated in defense of its actions that such reporting is in “the best interests of investors, who deserve clear explanations as to why a financial advisor was terminated” (as reported in the Wall Street Journal on January 6, 2006). As it turns out, the termination of employment in this case was wrongful, according to the arbitrators. Nevertheless, investors have a right to access full and accurate information about their brokers. Read the rest of this entry »