Trusts’ FINRA Claims Found To Be Not Arbitrable; Injunction Upheld

Mealey's (September 25, 2018, 2:26 PM EDT) -- ATLANTA — An 11th Circuit U.S. Court of Appeals panel on Sept. 24 ruled that a federal district court did not err in enjoining two investment trusts from initiating Financial Industry Regulatory Authority (FINRA) proceedings against a Canadian broker-dealer and eight partners that owned the broker-dealer because the trusts’ claims did not “arise in connection with” the defendants’ business activities and because FINRA rules do not require arbitration (Pictet Overseas Inc., et al. v. Helvetia Trust, et al., No. 17-12279, 11th Cir., 2018 U.S. App. LEXIS 27241)....