Arbitration

A 53-year veteran broker who filed a complaint as a client after airline stock values plummeted has received a $595,000 settlement.

Raymond James resolved a million-dollar arbitration claim that won’t appear on anyone’s BrokerCheck, thanks to the panel’s decision.

While the giant wealth manager has won the balance of 23 decisions so far, it’s facing a wave of cases seeking hundreds of millions in damages.

Former rep Edward L. Turley has at least five other pending arbitration cases seeking more than $62 million in damages.

The U.S. brokerage arm of the Swiss bank must pay damages under a FINRA arbitration case otherwise found to be ‘clearly erroneous.’

FINRA arbitrators tossed the case alleging negligence and fraudulent misrepresentation based on the wirehouse’s earlier settlement with the estate.

The case revolved around unit investment trusts, the same product that later showed up in a major SEC enforcement action against the brokerage.

An arbitrator ordered the minuscule payment despite taking the wirehouse to task in the ruling.

Amid rising criticism of bans on court filings in wealth management, the firms’ customer agreements are getting as much scrutiny as those of brokerage firms.

Despite standout defamation awards, such as a $13.5 million payout to an ex-UBS rep, advisors and attorneys say firms are abusing their U5 power.