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Charles Schwab
Schwab Removes Class Action Waiver from Customer Agreements
June 3, 2013
Responding to substantial pressure from regulators and the investing public, the brokerage firm Charles Schwab reversed itself...
June 3, 2013
Responding to substantial pressure from regulators and the investing public, the brokerage firm Charles Schwab reversed itself...
Added Pressure on SEC to Eliminate Mandatory Securities Arbitration
May 14, 2013
In the wake of a FINRA disciplinary hearing panel decision not to enforce its own rules against broker-dealer Charles Schwab barring class action waivers in customer-broker account agreements because of the Federal Arbitration Act (see my previous blog posts about that decision here and here), investor rights advocates have stepped up their efforts to press the Securities and Exchange Commission to exercise its powers under Dodd-Frank to ban mandatory arbitration. First, a few weeks ago, SEC...
May 14, 2013
In the wake of a FINRA disciplinary hearing panel decision not to enforce its own rules against broker-dealer Charles Schwab barring class action waivers in customer-broker account agreements because of the Federal Arbitration Act (see my previous blog posts about that decision here and here), investor rights advocates have stepped up their efforts to press the Securities and Exchange Commission to exercise its powers under Dodd-Frank to ban mandatory arbitration. First, a few weeks ago, SEC...
FINRA Panel Concludes FAA Preempts Enforcement Class Action Waiver Barring Rules
March 4, 2013
FINRA’s Office of Hearing Officers issued its decision today in Dep’t of Enforcement v. Charles Schwab & Co, an enforcement action in which FINRA alleged that Schwab’s class action and joinder waiver language in its customer agreement violated FINRA rules that preserved the judicial class action remedy for investors and empowered arbitrators to consolidate non-class though similar claims. For more details about the background and the facts of the enforcement action, see my previous...
March 4, 2013
FINRA’s Office of Hearing Officers issued its decision today in Dep’t of Enforcement v. Charles Schwab & Co, an enforcement action in which FINRA alleged that Schwab’s class action and joinder waiver language in its customer agreement violated FINRA rules that preserved the judicial class action remedy for investors and empowered arbitrators to consolidate non-class though similar claims. For more details about the background and the facts of the enforcement action, see my previous...
