September 29, 2018
According to the proposed rule for 240.21F-4(e) (i.e., where "otherwise required as relief for the violations that are the subject of the covered action or related action" is covered by the definition of "monetary sanctions"), a scenario in which an investor discovers that securities are missing from his or her retail brokerage account, and that the brokerage is either unwilling or unable to rectify the mistake, the harmed customer would be limited to a 10-30% recovery of the missing securities because of how awards are determined. If this interpretation of the proposed rule is accurate, the situation would be similar to one in which law enforcement stops a thief but decides to return just a portion of the original stolen property, even though all of it has been found.