7th Circ. Tosses Challenge To FINRA Broker Taping Rule

Law360, New York (January 3, 2013, 4:06 PM EST) -- The Seventh Circuit on Wednesday nixed a suit challenging a Financial Industry Regulatory Authority rule requiring firms to record conversations of employees whose previous employers were accused of fraud, saying the plaintiff lost standing when he was removed from the list of purportedly tainted brokers.

Neil Aslin, a former broker for Best Direct Securities LLC, alleged in his June 2011 complaint that Best Direct stripped his broker's license to comply with the FINRA rule.

An Illinois federal court dismissed Aslin’s suit in April, saying FINRA did...
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