Discrepancies, Complaints, and Arbitration: Rapid Fire

What this video covers

• The golden rule of trade errors: the party at fault absorbs the market move, and the difference between originally-intended NAV (firm-caused) and next NAV (customer-caused)
• Why every cancel-and-rebill requires qualified principal approval before landing in the destination account
• What triggers the customer complaint records rule: the distinction between an oral grievance (can be a "complaint" in definition) and a written one (required for the OSJ file)
• The four-year OSJ retention period for complaints, distinct from the three-year order-ticket tier and six-year account tier
• Why a rep cannot privately settle a complaint out of pocket, and why forwarding to the principal is mandatory, not optional
• The 30-calendar-day firm event-reporting deadline to the Financial Industry Regulatory Authority (FINRA), and why weekends and holidays count
• Arbitration versus mediation: binding and final with narrow vacatur grounds, versus voluntary and non-binding with no decision power for the mediator
• The six-year arbitration eligibility rule and why it is not a statute of limitations
• Why the customer holds the forum keys (can compel arbitration) but the firm cannot force arbitration without a predispute arbitration agreement, and the insurance-business exception
• The three-dollar triangle: $5,000 Form U4 complaint-disclosure threshold, $15,000 associated-person settlement report, and $25,000 firm settlement report
• Simplified arbitration at $50,000 or below (one arbitrator) versus three-arbitrator threshold above $100,000
• Form U5 filed by the firm within 30 days of termination, and why a willfully false Form U4 can itself trigger statutory disqualification