June 11, 2016
As an attorney and public arbitrator for FINRA,I wish to offer my comments in opposition to the proposed rule change. My comments are my own opinion and not those of FINRA.
My opposition is based on the very opinion by the Honorable Gershin A. Drain cited by FINRA, UBS Financial Services,Inc. v Thomas A. Mann. I do not believe a change in the rules are required since the request for offset already can be requested in the Statement of Complaint.
Judge Drain reviewed the record and made it clear in his opinion that the panel of arbitrators did in fact review
the subsequent request for an offset and by not changing its decision held it did not apply. (p. 6 of the decision).
Judge Drain also correctly pointed out that the petitioner could have easily ask for an offset by requesting it in its Statement of Claim either before or after the arbitration had ended. Petitioner declined to do so. (p.6 of the decision).
The Rules of Arbitration of financial disputes should only be changed when there is a significant need show for the change. If the parties want an offset to occur if they prevail, they need only request it in their Statement of Claim.