April 17, 2009
I am an attorney who practices extensively in securities arbitration. For over the last 10 years, I have represented both claimants and respondents in securities arbitrations.
I urge the passing of the proposed rule. Currently, there is a loophole that needs to be filled. If a statement of claim is filed and the brokerage firm, as well as a broker are named, there is a reporting requirement on the broker's CRD. However, if you take that same statement of claim, which includes alleged wrongdoing by the broker, but omit naming the broker, then currently it does not trigger a reportable event. As I am sure you are aware, many claimants' attorneys do not name individual brokers for strategic reasons and thus, the industry does not need to report allegations regarding the broker's misconduct on his or her CRD. How does this benefit the public? It does not. If there are allegations of broker misconduct, regardless if the broker is named or not in a statement of claim, then that matter should be reported on a CRD. This way, an investor can make an informed decision on hiring a broker to manage his or her assets. To put it another way, wouldn't you want to know if there has been arbitrations regarding misconduct by your own broker? Of course you would.
I urge you to approve the proposed rule as soon as possible.
Thank you, David Harrison
DAVID HARRISON, ESQ.
Law Offices of David Harrison