Unhappy investors now have a little more leeway when seeking arbitration over a dispute with their broker, now that the Securities and Exchange Commission has approved a new rule from FINRA.
According to the rule, firms and registered representatives are prohibited from making an arbitration settlement contingent on the customer's agreement to allow expungement of the dispute from the Central Registration Depository (CRD) system — or at least not to object to such an expungement.
Rule 2081 means that it will now be easier to uncover details about complaints, something that the Public Investors Arbitration Bar Association (PIABA) said was "alarmingly" high in a study it released last October.
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