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.