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Press Release - Phantom RetentionsMarch 12, 2015
FOR IMMEDIATE RELEASE
Securities Experts Roundtable Sends FINRA Report Critical of “Phantom Retentions” – the Unauthorized Listing of Experts on FINRA Witness Lists
March 12, 2015, New York, NY. The Board of Directors of the Securities Experts Roundtable (SER) has approved and today sent to the Financial Industry Regulatory Authority (FINRA) Dispute Resolution Task Force a report critical of the practice of “phantom retentions.” The report is authored by Stuart Ober, SER’s immediate Past President and a current Director.
According to the report, phantom retentions occur when one party in FINRA arbitration lists an expert witness, without the knowledge or consent of the listed expert and without actually retaining the expert. This deceptive tactic has several adverse effects noted in the report, including impeding the fair and efficient resolution of disputes and possibly unfairly harming the listed expert’s reputation.
In SER’s cover letter to FINRA, Richard M. Leisner, SER’s current President, stated: “SER is grateful to Stuart Ober for an excellent report that so effectively spotlights the unethical practice of phantom retentions and also suggests several solutions that SER hopes FINRA will consider.”
Founded in 1993, SER is a select group of financial services industry professionals with significant experience as testifying and non-testimonial consulting experts in litigation involving securities, commodities and investment-related issues. SER members provide expert witness services in federal and state courts, arbitration (FINRA, JAMS, AAA, etc.) and mediation proceedings. Our members’ backgrounds include careers in accounting, investment and asset management, business leadership, investment banking, corporate governance, the law and academe. SER is a non-profit corporation and conducts its business exempt from federal income tax under Section 501(c)(6) of the Internal Revenue Code.
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