July 23, 2008
As an attorney whose firm has represented customers in claims against broker dealers for many years, I welcome the opportunity to comment on this rule proposal.
The proposed amendment to paragraph 2 of the Uniform Submission Agreement is long overdue. In it's present form it invited a mispresentation by parties who almost never themselves read the procedures and rules relating to arbitration, but were required to so attest. As FINRA has pointed out, parties rely on their attorneys to be familiar with the relevant rules. The proposed language clarifies this issue.
The balance of the rule proposal is likewise designed to clean up the USA and should also be adopted.
However, of particular concern to me is the practice followed by some respondents named in securities arbitrations who refuse to execute a USA, and yet still participate in the process. If a claimant does not file an executed USA with the Statement of Claim, FINRA does not accept the case. This double standard should not be allowed. I would lkie to see a rule that prohibits a respondent from appearing in the fourm absent an executed USA.
Thank you for the opportunity to comment.