Schwab Can Force Clients To Arbitrate, FINRA Panel Rules

Law360, New York (February 21, 2013, 8:37 PM EST) -- Charles Schwab & Co. Inc. scored a big win Thursday when a Financial Industry Regulatory Authority panel invoked the Supreme Court’s ruling in Concepcion and found the broker can enforce arbitration provisions that bar client class actions though FINRA rules don’t allow investment banks and brokers to implement such class action waivers.

The panel found that the Federal Arbitration Act, whose strength the high court bolstered in its April 2011 decision in AT&T Mobility LLC v. Concepcion, prevents the securities regulator from enforcing its rules barring...
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