Special Arbitration Procedures for Investors Involved in Auction Rate Securities Regulatory Settlements
Investors covered by auction rate securities (ARS) final settlements with the regulators identified below may participate in a Special Arbitration Process (SAP) to recover consequential damages. The Special Arbitration Procedures are voluntary. If an investor elects not to take advantage of these special procedures, the investor may pursue all other legal or equitable remedies available including filing a regular arbitration with FINRA.
Eligible investors may choose any SAP associated with their firm. Please review the lists of regulators and firms covered by final settlements before filing a claim.
The SAPs found in the various regulatory settlements are not similar. Provisions for payment of fees, damages, and other procedures may vary from settlement to settlement. You should review all applicable SAPs before filing a claim.
SAP Frequently Asked Questions (PDF 24 KB)
Firms That Have Final Settlements with FINRA
FINRA SAP Rules (PDF 33 KB)
Submission agreement and claim form (PDF 32 KB) for customers of the firms below.
- BNY Mellon Capital Markets, LLC (PDF 474 KB)
- City National Securities (PDF 482 KB)
- City Securities Corporation (PDF 460 KB)
- Comerica Securities, Inc. (PDF 473 KB)
- Fifth Third Securities, Inc. (PDF 513 KB)
- First Southwest Company (PDF 448 KB)
- Harris Investor Services, Inc. (PDF 451 KB)
- Janney Montgomery Scott LLC (PDF 432 KB)
- M&I Financial Advisors, Inc. (PDF 512 KB)
- M&T Securities, Inc. (PDF 461 KB)
- NatCity Investments, Inc. (PDF 403 KB)
- Northwestern Mutual Investment Services, LLC (PDF 418 KB)
- WaMu Investments, Inc. (PDF 456 KB)
U.S. Securities and Exchange Commission (SEC) Special Arbitration Procedures
SEC SAP Rules (PDF 39 KB)
Firms that have entered into Agreements in Principle with SEC
- Merrill Lynch
Firms That Have Final Settlements with SEC
Submission agreement and claim form (PDF 32 KB) for customers of the firms below.
- Bank of America
- Citigroup Global Markets, Inc.
- RBC Capital Markets Corp.
- TD Ameritrade
- UBS Financial Services, Inc.
- UBS Securities LLC
- Wachovia
State Settlements
The settlements provide for a "special arbitration procedure" administered by FINRA, which may be used by investors attempting to recover consequential damages. NASAA's site describes those special procedures.
State Settlements Submission Agreement (PDF 15 KB)
State Settlements Claim Form (PDF 15 KB)
NASAA Settlements:
State of New York Assurances of Discontinuance:
- Bank of America Corp.
- Credit Suisse Securities
- Deutsche Bank AG
- Goldman Sachs Group Inc.
- J.P. Morgan Chase & Co.
- Merrill Lynch & Co.
- Morgan Stanley
- Royal Bank of Canada
Please visit our Web site often for information on further developments.
