Law360, New York (February 01, 2012, 9:35 PM ET) -- The Financial Industry Regulatory Authority on Wednesday accused Charles Schwab & Co. Inc. of violating FINRA rules by altering customer account agreements to prevent some 7 million customers from participating in class actions against the company.
In its complaint filed before the FINRA Office of Hearing Officers, FINRA said the San Francisco-based financial services giant had also included another provision requiring customers to agree that arbitrators cannot consolidate claims by more than one party, which allegedly also violates FINRA rules.
“The class action waiver will likely...
FINRA Targets Charles Schwab Over Class Action Waivers
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