Charles Schwab Lifts Client Class Action Ban

Law360, New York (May 16, 2013, 10:41 PM EDT) -- Charles Schwab Corp. will drop its class action waiver for disputes going forward, the brokerage said Wednesday, as opposition mounts against a Financial Industry Regulatory Authority panel's decision to allow such waivers.

Charles Schwab said that while it awaits decisions by regulators on the controversial provision, it is modifying its client account agreements to drop the waiver, which had essentially allowed it to block client class actions by enforcing arbitration provisions. Since the FINRA panel’s decision in February, state regulators, investor groups and FINRA itself have opposed the...
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