The ruling could cause broker-dealers to add the prohibitions to their customer agreements, which would eliminate class action lawsuits.
Read the full article from Lexology.com here.
Finra Dumps Judicial Class Action Waiver Ban for Brokers
Finra has ruled that its own rule prohibiting the use of judicial class action waivers in broker-dealer customer agreements is invalid. That’s because regulation of the matter is preempted by the Federal Arbitration Act, reports Lexology.com.
