Complaints and Dispute Resolution: Rapid Fire
Chapters in this video
- 0:00 Riley's terrible day: trade error versus clearly erroneous transaction
- 1:12 Cancel and rebill flow, plus the firm-absorbs-loss rule
- 2:56 Erroneous reports and the binding execution price
- 3:25 Complaint handling: verbal versus written, supervisor notification
- 4:55 Form U4 thresholds: $5,000 claimed damages, $15,000 and $25,000 settlements
- 6:18 Serious events, statutory disqualification, and dispute resolution paths
- 8:02 Rapid-fire exam recap
What this video covers
- The exact difference between a trade error (human mistake, fixed internally) and a clearly erroneous transaction (system price anomaly, nullified only by Financial Industry Regulatory Authority (FINRA) or the exchange)
- Why the firm absorbs every trade error loss, and why accidental profits also belong to the firm unless written policy states otherwise
- How cancel and rebill procedures flow through operations with supervisory approval, and why both legs hit the blotter
- Why an erroneous report does not void a trade: the actual execution price remains binding
- The mandatory first step when any customer complaint arrives: immediate supervisor notification, with no personal settlement attempts permitted
- The four-year written complaint retention rule at the office of supervisory jurisdiction (OSJ), and the $5,000 Form U4 disclosure trigger that ignores merit entirely
- The $15,000 versus $25,000 settlement disclosure thresholds for associated persons versus firms, and why mediation is voluntary while arbitration is final and binding
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