Di Santo LLP - Attorneys at Law » Litigation & Dispute Resolution

Beth A. Di Santo was the lead speaker at a seminar “Tips, Tricks and Techniques for Updating Indemnification Provisions in Merger & Acquisition Deals in 2010.”

admin — Thu, 29 Apr 2010 23:06:57 +0000

Please visit: http://www.execsense.com/details.asp?id=1061 to register or receive more information about the Seminar.

Congress May Require Brokers To Act as Fiduciaries in 2010

admin — Fri, 12 Mar 2010 14:50:04 +0000

An often overlooked feature of the Senate Financial Reform Bill proposed by Senator Christopher Dodd would require insurance and stock brokers to register as advisers with the SEC. This means that brokers would be subjected to the Investment Advisers Act of 1940, requiring them to act as fiduciaries to their clients. Acting as a fiduciary for a client would mean putting that clients’ interests first, as registered investment advisers are legally required to do. Brokers generally are held to a “suitability” standard, meaning recommendations must be suitable to the client but do not have to be the best for them. Under the suitable standard brokers are free to pick the fund that pays them the biggest commission from among a group of suitable funds. A fiduciary standard also would require brokers to prominently disclose any conflicts of interest. Should the bill pass, this new fiduciary standard would also provide additional protections to investors in the sale of variable annuities, a product that often comes with high costs but pays above-average commissions to sellers, as brokers would have to show that it is the best of all available products. If you or your company needs assistance or guidance concerning a securities dispute or a securities fraud matter, do not hesitate to contact Ignatius Grande at Di Santo LLP.

Investors Filing Claims Against Lehman Brokers

admin — Sun, 07 Feb 2010 18:32:51 +0000

Investors in principal-protected notes that were issued by Lehman Brothers have recently been filing FINRA arbitrations against their brokers to recoup their losses. Investors who bought such notes from brokers at other banks such as UBS, which are still in business, are in a better position to collect than investors who purchased their notes directly from Lehman Brothers brokers.

http://www.fa-mag.com/fa-news/5176-investors-target-former-lehman-brokers.html

FINRA Arbitration Rates Rise

admin — Tue, 26 Jan 2010 23:12:06 +0000

In 2009, the number of arbitration cases filed with FINRA soared to 7,137 cases, up from 4,982 cases in 2008. The most common claim alleged by plaintiffs was breach of fiduciary duty. While cases involving mutual funds and common stock were the most common, there was also a large increase in the number of cases filed regarding variable annuities.

http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20100122/FREE/100129956