Brokers’ Report: IDA – Time Limitation

IDA - TIME LIMITATION

Sometimes brokers or member firms query whether they can or should be the subject of IDA disciplinary proceedings when the broker has left the industry or the matters in question otherwise seem to be "ancient history". Various regulatory decisions have established that the IDA is empowered to investigate and discipline former members who are no longer working in the industry. As for time limitations, a recent decision of the IDA’s Pacific District Council (Re Global Securities Corporation) determined that an IDA Panel does not have jurisdiction to proceed with a hearing where more than six years have passed since the events in question. IDA Staff argued that limitation periods should not start until they are aware of the facts giving rise to the complaint since "discoverability" is generally an important component of limitations law. The Panel disagreed that discoverability