FINRA Pilot Arbitration Program is a Step in the Right Direction
Yesterday FINRA announced a pilot program to do away with the financial services industry participant in arbitration panels. Rather, all three panelists will consist of an investor’s peers.
FINRA is to be commended for at least putting a toe in the water towards arbitration reform. Studies have shown investors believe that the panels are bias against them. And the statistics supports this.
This is long overdue but a pilot program is hopefully just the beginning. Rather than a small pilot program this should be rolled out on a wholesale basis.
There will be a surge of investor claims in the wake of the sub-prime/credit crisis, so leveling the playing field for investors should continue to be one of FINRA’s main focuses.
Jacob ("Jake") H. Zamansky is one of the country’s foremost authorities on securities arbitration law, the legal recourse for investors claiming broker wrongdoing, or for brokers claiming wrongful termination or other misconduct by their employer. Zamansky & Associates, the New York-based law firm he founded, represents both individuals and institutions in complex securities, hedge fund, and employment arbitrations.
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