The Financial Industry Regulatory Authority (FINRA) has newly suggested a rule to put constraints on brokerage firms that hire brokers with a record of misconduct. If approved, it will pertain to “less than 2%” of broker-dealer firms, the CEO of FINRA, Robert Cook said Wednesday.
Arbitration for Aggrieved Investors Is Fast -- But Is It Fair?
The arbitration clause can be found in virtually all the account opening documents used by registered broker-dealers. Maybe your financial advisor or stock broker pointed it out to you — maybe not. Chances are extremely good, however, that you signed this clause and are now bound to resolve any disputes through arbitration.