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FINRA Panel Denies RR Had Duty to Give Client Tax Advice

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Oct 6, 2010 10:55 am

FINRA Arbitration Panel Rejects Duty to Advise on Tax Consequences by Broker

In a Statement of Claim filed in October 2009, Claimant Susan Hamovitch (appearing without legal counsel – “pro se”) alleged that Merill Lynch and Peter Inserra had been negligent and breached their fiduciary duty to her in connection with advising her about the tax consequences of certain securities transactions.  Hamovitch sought sought $32,326.00 in compensatory damages plus interest and filing fees. (In the Matter of the Arbitration Between Susan Hamovitch, Claimant vs. Merrill Lynch Pierce Fenner & Smith, Inc. and Peter Inserra, Respondents (FINRA Arbitration 09-05858, September 30, 2010). Respondents Merrill Lynch and Inserra denied the allegations made in the Statement of Claim and asserted various affirmative defenses. Respondents requested dismissal of the Statement of Claim, expungement of Respondent Inserra's Central Registration Depository (CRD) records.



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