Financial Advisor Unjustifiably Discharged by UBS Secures $1 Million Compensation in FINRA Arbitration, Headed by Shumaker
SARASOTA, FL.- In a major win for financial advisor Randy S. Anderson, law firm Shumaker has secured a staggering $1 million arbitration award against UBS Financial Services post an unjustified termination.
This groundbreaking decision, handed down by a Financial Industry Regulatory Authority (FINRA) panel, serves as proof that UBS failed to substantiate their reasons for dismissing Anderson, raising red flags about potential underlying motives behind his termination.
Anderson, a dedicated eight-year veteran of UBS's Boise branch, was let go in November 2020, with the company citing unauthorized trades and a lack of client approval as the causes. However, Shumaker Partners Jarrod Malone and Brandon Taaffe argued that this termination was unwarranted, possibly driven by speculation about Anderson's future within UBS or his age.
"This case underscores a pervasive issue in the financial services industry—an advisor can be fired over minor compliance rule violations, potentially leading to a series of setbacks that can derail their career," stated Jarrod Malone of Shumaker.
"No one's career should be sacrificed on rumors and speculation," added Brandon Taaffe. "This victory is a significant stride towards promoting fairness and transparency in the financial services sector. We're proud to have defended our client's reputation and held firms accountable for misusing their internal processes."
The FINRA panel concurred with Shumaker's claims, awarding Anderson a $1 million settlement and modifying the explanation of the incident in his FINRA BrokerCheck record to include all the mitigating factors that didn't justify such extreme action. The panel highlighted several troubling aspects of UBS's termination process, including:
- A protracted and inconsistent investigative process,
- Redacted and incomplete documentation,
- Biased treatment compared to other employees,
- Absence of testimony from the decision-makers, and
- Potential financial incentives behind the termination.
The panel concluded, "Given this context, UBS failed to present sufficient evidence justifying the termination." Anderson now works at Stifel Nicolaus & Co.
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ENRICHMENT DATA:
Pervasive issues in the financial sector often revolve around wrongful termination claims and the misuse of internal processes.
- Wrongful Termination Claims and Arbitration Outcomes Financial advisors may claim wrongful termination, leading to arbitration or lawsuits. For instance, UBS was ordered to pay $1 million due to an unjustified termination, with the advisor arguing that the dismissal was based on pretextual reasons such as age discrimination[1][3].
- Disputes over Just Cause for Termination Terminations "for cause" usually pertain to serious breaches such as deceit, unauthorized trading, or failure to follow instructions. However, courts and arbitration panels carefully evaluate whether such cause is justified, particularly if the advisor can demonstrate that the misconduct was unproven, condoned, or isolated rather than systematic[2].
- Impact of Health and Discrimination Issues There are instances where advisors claim wrongful termination owing to discrimination or health-related issues[4].
- Misuse of Internal Processes Occasionally, firms may abuse internal termination processes, potentially to block advisors from completing significant transactions like the sale of their client book, among other concerns[5].
- The financial services industry often faces pervasive issues, such as the misuse of internal processes, which can lead to wrongful termination claims, as seen in the case of financial advisor Randy S. Anderson versus UBS Financial Services.
- Shumaker, a law firm representing Anderson, secured a $1 million arbitration award against UBS, highlighting the firm's commitment to promoting fairness and transparency in business and finance, and providing a significant stride towards rectifying misuse of internal processes within the financial services sector.
