SEC Arbitration Ban Rule Not Retroactive: 9th Circ.

Law360, New York (February 23, 2011, 2:24 PM EST) -- The Ninth Circuit ruled Tuesday that a U.S. Securities and Exchange Commission rule prohibiting nonattorneys who have been banned from the securities industry from representing parties in securities arbitration cannot be applied retroactively.

A statute or regulation should only be retroactively applied if there is “clear congressional intent” that that should be the case, a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit said.

The rule at issue was proposed by the Financial Industry Regulatory Authority in April 2007 and adopted by...
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