03.03.21
Biden's SEC Nominee Says Investors Deserve Right to Sue Brokers, Advisors
by: Tracey Longo
At his confirmation hearing, Gary Gensler, President Biden's choice to lead the Securities and Exchange Commission (SEC), said investors should be able to take broker-dealers and investment professionals to court to settle disputes. Sen. Elizabeth Warren (D-Mass.) asked Gensler if he believed it was fair that investors who suspect they were defrauded are bound by mandatory arbitration clauses when they seek relief. Gensler responded, "While arbitration has its place, I think it’s so important investors, or in that case customers, have an avenue to redress their claims in the courts." Gensler also faced questions on forced arbitration, payment for order flow, the regulation of digital assets, and gamification of stock trading. On regulating no cost trading and other digital assets, Gensler says he wants to remain "technology neutral" and preserve capital formation and investor protections. He added, "I think technology and markets constantly change and evolve and that it’s important for the SEC to provide guidance and clarity." Gensler noted that custody of funds concerning digital assets is one area that needs increased oversight.
Read the full article on Financial Advisor.