FINRA Arbitration Panel Awards $16+ Million to Customers of BNP Paribas Securities Corp.


In June, an arbitration panel for the Financial Institute Regulatory Authority (“FINRA”) issued an award in a case between a retired couple who lived in London and BNP Paribas Securities Corp. (“BNP Paribas”), a FINRA registered broker-dealer.  According to the claim, the couple was approached by a broker for BNP Paribas who recommended that the couple invest the majority of their savings into a single highly complex derivative security.  The couple claimed that BNP Paribas’ own compliance regulations prohibited the firm from selling this type of security to individual investors, so their broker had them form a corporation for the sole purpose of purchasing this investment in it.  According to the claim, BNP Paribas let this very obvious end-run around the rules be successful and sold the couple over $14 million worth of this security.

The arbitration panel heard testimony for 95 days before ultimately rendering a decision.  The panel ordered BNP Paribas to pay the couple $14.3 million in damages, plus interest, as well as $500,000 in sanctions for violations of the discovery process. 

If you believe your broker with BNP Paribas Securities Corp., or any other brokerage firm or investment advisor, acted improperly, or recommended you purchase securities which were not appropriate for you, contact us for a free, no obligation consultation.
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