A Florida State Supreme Court recently ruled that the State's statutes of limitations can apply to FINRA arbitration claims. (TR) This is significant because FINRA allows a six year window to bring a claim, whereas the Florida laws may limit the window to four or two years.
Florida's statute of limitations can apply not only to court proceedings, but to securities arbitration cases between investors and their brokers, the Florida Supreme Court ruled Thursday.
The ruling, in favor of Raymond James Financial Services Inc , could, at least in Florida, empower securities arbitrators to cut the time investors have to file a complaint with Financial Industry Regulatory Authority from six years to four years or even two years. And other states could follow.
The decision clarifies a longstanding question about whether FINRA arbitrators can apply a Florida law to determine whether a case is filed in a timely manner. Many securities arbitrations are filed in Florida due to the state's large number of retirees.