Close
Close

Briefly Noted

Broker Arbitration Rule Change

Investors will soon be able to choose an all-public panel for arbitration cases against brokers. The Securities and Exchange Commission (SEC) approved a recommendation by the Financial Industry Regulatory Authority (FINRA) to give individual investors more choice over arbitrators. The changes are being made in response to criticisms that the existing process for selecting an arbitration panel favors brokerage firms over individual investors.

An investor who files a claim for more than $100,000, for an unspecified amount or for non-monetary damages will have his case heard by a three-person arbitration panel. A claim between $25,000 and $100,000 can also be heard by a three-person panel—instead of a single arbitrator—if both parties agree.

...To continue reading this article you must be registered with AAII.

Gain exclusive access to this article and all of the member benefits and investment education AAII offers.
JOIN TODAY for just $29.
Log in
Already registered with AAII? Login to read the rest of this article.

Register for FREE
to read this article and receive access to future AAII.com articles.
  


Discussion

No comments have been added yet. Add your thoughts to the discussion!

You need to log in as a registered AAII user before commenting.
Create an account

Log In