Arbitration Forces Broker to Repay $3.25M

7 Feb

DollarsAn Investment News article recently reported that a former Barclays financial advisor participated in a FINRA (Financial Industry Regulatory Authority) arbitration where it was decided that he must repay the firm $3.25 million.

This is part of the signing bonus he was paid when he was hired by Barclays. The deal was $928,571 per year for seven years. Barclays was seeking to recoup $4.6 million in the arbitration after terminating his employment.

It is unusual for arbitration results to be disclosed to the public. Typically a benefit of using arbitration rather than litigation is that it can remain confidential. But since FINRA is a regulatory body for the securities industry, their rules state that all of their awards are made publicly available.

This article can be read in full on the Investment News website.

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