Finra should review ban on in-person arbitration hearings
One industry group is now calling on Finra to end the remote hearings it says are harming investors. Two hundred and sixty-three hearings have been conducted remotely as of the end of March.
May 10, 2021 2 MINS
When the Financial Industry Regulatory Authority Inc. decided to shut down in-person arbitration hearings last March, claimants and respondents embraced the idea of resolving disputes from the comfort of home via the convenience of a Zoom call.
Participants and legal teams quickly adapted to virtual hearings and Finra which runs the arbitration system that adjudicates claims made by customers against brokerages and registered representatives extended the postponement through July 2 of this year.
Bills to end mandatory arbitration introduced in House, Senate
The Securities Industry and Financial Markets Association opposes the bill, saying arbitration promotes fair, efficient, and economical dispute resolution for all parties.
April 16, 2021 3 MINS
Advocates for ending mandatory arbitration are hopeful that the political atmosphere is right to advance legislation introduced in Congress this week.
On Thursday, Sen. Jeff Merkley, D-Ore., and Rep. Bill Foster, D-Ill., offered bills in their respective chambers, the Investors Choice Act, that would ban pre-dispute mandatory arbitration agreements in brokerage and investment advisory customer contracts. The bill also would prohibit contract clauses that prevent class action lawsuits.