Becker & Poliakoff

Broker/Dealer Gap Customer Arbitration Plan

The Gap Customer Arbitration Plan (“GCAP”) provides legal defense for Broker/Dealers (the “Firm”) and their Registered Representatives for customer arbitrations arising out of transactions and services provided by the Firm during the coverage period. GCAP is designed to supplement the Firm’s errors and omission policy (“E&O”) and provide coverage for the deductible portion of E&O claims for a flat monthly fee, and continued representation under the E&O policy on an hourly basis once the deductible is exceeded on any individual matter.

Basic Services

  1. The review and consultation with principals of the Firm on reasonable times and frequency of any customer complaint or threatened arbitration.
  2. Provided the Firm has complied with its obligations set forth above, Becker will provide legal defense representation of Representatives on any Customer Arbitration during the Coverage Period, up to the amount of the E&O deductible determined by using the rates established in the retainer agreement.
  3. The engagement of local counsel for a Customer Arbitration when in the judgment of Becker such engagement is necessary for the proper defense of the Customer Arbitration or required by local law.

Obligations of the Client

  1. Provide notice to Becker and the E&O carrier within five business days of receipt of any customer complaint or Customer Arbitration.
  2. Maintain E&O coverage during all times this retainer is in effect and timely furnish to Becker any and all notices sent to or received from the E&O carrier.
  3. Cooperate in the defense of all Customer Arbitrations and provide timely response to all discovery, investigatory and other requests for documents and information.
  4. Payment of the monthly retainer fee on the first of every month until this retainer is terminated.
  5. Provided timely substitution of counsel upon termination of this retainer.

For more information on Becker’s GCAP Broker/Dealer services, please contact Robert Rabinowitz at .