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.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
