3rd Circ. Deepens Uncertainty Over FINRA Arbitration

By David Cinotti ( September 25, 2018, 2:01 PM EDT) -- Customers who hire broker-dealers have a right to arbitrate disputes with them under the rules of the Financial Industry Regulatory Authority, a nonprofit authorized by federal law to oversee the broker-dealer industry. It is a trend, however, for brokerage firms to insert forum-selection clauses in customer agreements that require all disputes arising out of the brokerage relationship to be litigated in court. When the customers demand arbitration, the question arises — what controls, the FINRA rules or the customer agreements? Answering this question requires courts to consider the interplay of federal arbitration law, federal securities law and state contract law....

Law360 is on it, so you are, too.

A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence. Over 200 articles are published daily across more than 60 topics, industries, practice areas and jurisdictions.


A Law360 subscription includes features such as

  • Daily newsletters
  • Expert analysis
  • Mobile app
  • Advanced search
  • Judge information
  • Real-time alerts
  • 450K+ searchable archived articles

And more!

Experience Law360 today with a free 7-day trial.

Start Free Trial

Already a subscriber? Click here to login

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!