The Blog Of The Securities Industry Professional Association

SIPA Files Supreme Court Brief of Amicus on Flawed NASD Merger

The SIPA has been fighting for year to try and get owners of Broker Dealers what was rightfully theirs from the merger of NASD and NYSE regulation into the newly formed FINRA.  Despite many obstacles and setbacks the case has now been sent to the Supreme Court of the United States to basically decide once and for all if NASD was granted absolute immunity in the case of Standard Investment Chartered v National Association of Securities Dealers.  The crux of this case is stunning in its simplicity which is basically the NASD arguing that they did mislead owners of brokerage firms and lied about the amount of money that the IRS said could be paid (and when they received that notice) but that even though they mislead their members, the did it in the interest of acting as a regulator and were trying to affect a merger that the SEC requested, thus they are immune for the laws of the land regarding misleading members and for messing with payment figures.  The District court under Judge Radkoff ruled that they had complete immunity and until he saw something in our laws or received a judgment from a higher court that they are not immune he had to grant them immunity.  So here we are now before the Supreme Court and the SIPA has filed this Amicus Brief on behalf of its members with the court.  Please read in detail and let us know if you would like to receive additional information.

Click here to read the SIPA Brief before the U.S. Supreme Court

If the court does rule that the regulator has complete immunity it may be time to either find a new career or demand congress changes the law.  However if they reject the immunity,  the case will be sent back for review with the admission that they acted improper and money can be sought by members for damages.


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November 2nd, 2011



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