SEC's Aguilar Backs Limits On Investor Arbitration Pacts

Law360, New York (April 16, 2013, 7:02 PM EDT) -- A top U.S. Securities and Exchange official on Tuesday endorsed restrictions on forced-arbitration agreements that allow brokerage firms to resolve fraud claims outside of court, citing a Dodd-Frank Act provision that authorizes the SEC to take action.

SEC Commissioner Luis Aguilar, a Democrat, sharply criticized the use of customer agreements that force investors to arbitrate claims rather than sue in state or federal court. Such agreements have become commonplace among brokerage firms and in the broader investment advisory industry, Aguilar said in prepared remarks for a...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.