Regina (Rega) Jablon v. Dean Witter & Co., and Sydney Turner

This is an appeal from an order of dismissal. Appellant Jablon alleges Dean Witter violated New York Stock Exchange (NYSE) Rule 405 (the “know your customer” rule) and Article III, Section 2 of the National Association of Securities Dealers (NASD) Rules of Fair Practice (the “suitability” rule) in its handling of her margin account. She also charges a violation of Securities and Exchange Commission Rule 10b-5, 17 C.F.R. § 240 .10b-5 (1975). The district court dismissed the complaint, ruling (1) there is no implied private cause of action under NYSE Rule 405 or the NASD suitability rule, and (2) the Rule 10b — 5 claim was barred by the statute of limitations. We affirm.

FACTS

In 1946, Jablon opened a “margin account” with Dean Witter. She alleges Sydney Turner, her account salesman at Dean Witter, urged her to open it without first inquiring diligently into her financial position, business expertise, or investment goals. She says she was not advised she could close her margin account and thereby avoid paying interest on funds loaned to her by Dean Witter and avoid placing additional funds in her account to meet “margin calls.” Finally, she alleges that Turner improperly…