This week the president of FINRA’s office of dispute resolution, Linda Feinberg, announced the SRO will open its arbitration forum to registered investment advisers. The statement was made at the annual meeting of the Public Investors Arbitration Bar Association where Feinberg indicated FINRA will formally announce the program in the near term. Currently, the forum is available for investor and industry disputes involving broker-dealers. While investment advisers may submit to FINRA arbitration if a claim is brought against them, they are not eligible to affirmatively bring claims in the forum. Unlike the mandatory FINRA arbitration required for broker-dealers, advisers’ use of the forum will be voluntary and require the agreement of all parties to a dispute.
For further information about FINRA arbitration or any other securities related concern, please contact the author at info@jackolg.com or (619)298-2880.