If You Need to Sue Your Stockbroker, Delay is Your Enemy and the Clock is Ticking

We often advise readers of this blog to act promptly if they suspect that their stockbroker mishandled their accounts or gave them unsuitable or misleading recommendations. Usually, we just post a general warning that potential filing deadlines can bar investment claims. But we thought it might be a good idea to explain a bit more about these potentially catastrophic limitation periods. When we talk about deadlines for pursuing claims against brokers and brokerage firms, we’re referring to two different types of time limitations. FINRA Eligibility Rule The first type of limitation is an eligibility cutoff that can bar access to the arbitration forum operated by the Financial Industry Regulatory Authority, better known as FINRA. Disputes between a customer and his or her broker or brokerage firm almost always must be resolved exclusively through FINRA arbitration. Rule 12206 of FINRA’s Code of Arbitration states in part that “[n]o claim shall be eligible for…

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