News | 03.05.19
Bills Would End Mandatory Arbitration in Advisor, Broker Contracts
Sen. Sherrod Brown (D-OH), ranking member of the Senate Banking Committee, has introduced a measure that would end pre-dispute arbitration agreements that are part of almost every brokerage contract and many investment-advisor contracts. Brown is primarily focused on student loans, credit card agreements, and employment contracts, but his bill also would apply to the arbitration system for broker-customer disputes run by FINRA, as well as to the American Association of Arbitration system that most investment advisor clients use. Another bill, introduced in the House and Senate, is broader in scope and would amend the Federal Arbitration Act. It also would affect FINRA arbitration and that of investment advisors.
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