(January 24 – 14:50 ET) – The U.S. Securities Industry Conference on Arbitration has launched a pilot program that allows clients the choice between Self-Regultory Organization (SRO) and non-SRO arbitration of disputes regarding retail securities accounts.
In the U.S., several self-regulatory organizations provide arbitration for the securities industry, including the National Association of Securities Dealers, the New York Stock Exchange, the Pacific Stock Exchange, and others. In Canada the primary industry SRO, the Investment Dealers Association, expanded arbitration across the country last year.
“Arbitration has proven to be a fair, efficient and cost-effective method of resolving disputes between customers and their firms,” says Stuart Kaswell, the Securities Industry Association’s senior vice president and general counsel. “While the arbitration fora provided by the self-regulatory organizations have a demonstrated record of fairness and continue to perform a valuable function for investors, this program offers alternatives for those customers who wish it.”
Seven retail brokerage firms have volunteered for the two-year program which gives complaining clients the choice of arbitrating their disputes at either a SRO forum, or a non-SRO forum selected by the firm.
-IE Staff