Complaints and Dispute Resolution: Rapid Fire

What this video covers

• Who absorbs the loss on a trade error (the firm, never the rep or customer) and the proper cancel-and-rebill procedure through operations with supervisory approval
• The critical distinction between a trade error fixed internally and a clearly erroneous transaction that only the Financial Industry Regulatory Authority (FINRA) or the exchange can nullify
• Why an erroneous report on an options exchange does not void the trade; the actual execution price remains binding
• The complaint chain of command: rep notifies supervisor first, written complaints trigger 4-year recordkeeping at the Office of Supervisory Jurisdiction (OSJ), and serious allegations carry a 30-calendar-day reporting clock
• Form U4 disclosure triggers at $5,000 in claimed damages regardless of merit, and settlement disclosure thresholds at $15,000 (associated person named) versus $25,000 (firm named)
• Mediation as voluntary and non-binding versus arbitration as final and binding, with simplified arbitration capped at $50,000 and mandatory 3-arbitrator panels above $100,000
• Why class action claims bypass FINRA arbitration entirely and proceed to court, with firms prohibited from including class action waivers