The FINRA Investor Education Foundation has issued an investor alert regarding promotions about certificates of deposit (CDs) promising interest rates that are substantially higher than current averages. FINRA has observed offers for “low-risk” products with outsized returns. Investors should be wary of unsolicited emails and calls that offer outsized interest from financial institutions, including banks […]
Nevada Federal District Court Permits City of Reno to Move Forward with FINRA Arbitration Against Underwriter of Auction Rate Securities
By Jerry Carter. A current issue in securities arbitration is whether, and under what circumstances, an issuer of securities may compel a member of the Financial Industry Regulatory Authority (“FINRA”) to arbitrate a dispute. The United States District Court for the District of Nevada recently issued a decision permitting the City of Reno to arbitrate […]
May an Investor Suffer a Legally Compensable Loss from a Nominally Performing Illiquid Investment That Turns out to Be Riskier than Represented at the Time of Sale?
By Jerry Carter. An investor is sometimes faced with a situation in which he or she holds an illiquid investments that is nominally performing even though the investment’s risk profile has increased due to factors that were misrepresented or inadequately disclosed at the time of sale. The United States Court of Appeals for the Second […]