Finra opens arb system to RIAs

Finra opens arb system to RIAs
In a surprise move, B-D cop Finra will allow RIAs to use its arbitration system. Why?
JAN 14, 2013
The Financial Industry Regulatory Authority Inc. has opened up its arbitration system to registered investment advisers. Until now, Finra arbitration has been used in investor or industry complaints involving securities firms and broker-dealers. RIAs now can use the system, according to Linda Feinberg, president of Finra's office of dispute resolution. Ms. Feinberg disclosed the change Thursday in Austin, Texas, at the annual meeting of the Public Investors Arbitration Bar Association. She said that Finra will formally announce the program soon and that a few arbitration cases involving investment advisers are already in the authority's system. The move to include RIAs in Finra arbitration is in no way related to Finra's effort to become the self-regulatory organization overseeing investment advisers, according to Ms. Feinberg. “We're doing it because we had a lot of requests from attorneys,” she said. Other options, such as arbitration outside of an SRO and taking a claim to court, are more expensive than Finra arbitration, she said, adding that both parties had to agree to use Finra's arbitration system for a claim to go forward. Through Sept. 30, Finra, which operates the largest dispute resolution forum in the securities industry, had closed 3,747 arbitration cases this year, down 17% from 4,489 through September 2011. Over the same nine months, 3,394 cases were opened, down 8% from 3,705 through the first nine months of 2011.

Latest News

Integrated Partners, Kestra welcome multigenerational advisor teams
Integrated Partners, Kestra welcome multigenerational advisor teams

Integrated Partners is adding a mother-son tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

Women share investing strengths, asset preferences in new study
Women share investing strengths, asset preferences in new study

Financial advisors remain vital allies even as DIY investing grows

Trump vows to 'be nice' to China, slash tariffs
Trump vows to 'be nice' to China, slash tariffs

A trade deal would mean significant cut in tariffs but 'it wont be zero'.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.