News | 09.10.19
Virginia Poised to Ban Mandatory Arbitration Clauses for State-Registered Advisors
Investment advisors registered in Virginia will soon not be able to force clients into arbitration to settle disputes. A new state rule will go into effect on next week that bans mandatory arbitration clauses in client contracts, according to Ron Thomas, director of the Virginia Division of Securities and Retail Franchising. "It's totally contrary to the fiduciary duty of an investment advisor to take away a right someone has to pursue the forum of their choice if they have a disagreement with an investment advisor," Thomas said in an interview at the North American Securities Administrators Association annual conference. Virginia is the first state to ban mandatory arbitration for advisors.
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