Wealth Management: Why Banning Mandatory Securities Arbitration Would be a Mistake

Published on:
May 27, 2015
By:
  • Kevin Carroll

 The following Op Ed was originally published in WealthManagement.com on May 27, 2015.

Arbitration in the securities industry – between broker-dealers and their customers – wasn’t always mandatory.

In 1972, the predecessor to FINRA created a rule that compelled broker-dealers to arbitrate if demanded by the customer. That rule continues today as FINRA Rule 12200.

The rule is based on the belief – true then and still true over four decades later – that many customers will want to arbitrate and will benefit from arbitration.

Continue reading at wealthmanagement.com.

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