Chapter 20: Resolving Disputes and Suitability

Chapter summary

Chapter 20 covers dispute resolution, regulatory disclosures, and suitability edge cases. FINRA mediation is voluntary and non-binding. FINRA arbitration is binding and final. Simplified arbitration applies to claims of $50,000 or less. Form U4 is the registration application; Form U5 is the termination notice. BrokerCheck is the public record of registrations and disclosures. Churning is governed by Rule 2111's quantitative suitability obligation and FINRA Rule 2010.

Key concepts

• Errors
• Resolving Problems
• Disclosures Under Code of Arbitration - Updating Form U4
• Suitability
• Errors
• Resolving Problems
• Disclosures Under Code of Arbitration - Updating Form U4
• Suitability
• Distinguish between an execution error (trade executed incorrectly) a...
• Identify clearly erroneous transactions: FINRA and exchanges can canc...
• Execution Errors
• Error Account

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