Finra opens arbitration system to RIAs

Oct 28, 2012 @ 12:01 am

By Bruce Kelly

The Financial Industry Regulatory Authority Inc. has opened up its arbitration system to registered investment advisers.

Until now, Finra arbitration has been used for investor or industry complaints involving securities firms and broker-dealers.

Linda Fienberg, president of Finra's office of dispute resolution, disclosed the change last Thursday in Austin, Texas, at the annual meeting of the Public Investors Arbitration Bar Association.

Finra will formally announce the program soon, and a few arbitration cases involving investment advisers are already in the system, she said.

The move is in no way related to Finra's effort to become the self-regulatory organization overseeing investment advisers, Ms. Fienberg said.

“We're doing it because we had a lot of requests from attorneys,” she said.

Other options, such as arbitration outside an SRO and taking a claim to court, are more expensive than Finra arbitration, Ms. Fienberg said, adding that both parties have to agree to use the regulator's arbitration system for a claim to go forward.

Year-to-date through Sept. 30, Finra had closed 3,747 arbitration cases, down 17% from 4,489 a year earlier. Meanwhile, 3,394 cases were opened, down 8% from 3,705 a year earlier.

bkelly@investmentnews.com Twitter: @bdnewsguy

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

INTV

Why broker-dealers are on a roll

Deputy editor Bob Hordt and senior columnist Bruce Kelly discuss last year's bounce-back for IBDs.

Latest news & opinion

Top 10 IBDs ranked by revenue

These independent broker dealers generated the most revenues in 2017.

8 podcasts advisers listen to when they aren't working

Listening to podcasts for the fun of it.

UBS continues to cut loans to recruits, while increasing compensation to brokers

The wirehouse reduced recruitment loans 20% and increased bonus loans 68% in the first quarter.

Things are looking up: IBDs soared in 2017

With revenue up, interest rates rising and regulation easing, IBDs are soaring.

SEC advice rule may give RIAs leg up over broker-dealers

Experts say advisers will be able to point to their role as fiduciaries as a differentiator in the advice market.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print