Professor Jill Gross, the director of Pace Law School’s Investor Rights Clinic, commented on the effects of a FINRA-proposed rule change recently approved by the SEC. The change will allow more arbitration panels composed of no one with industry ties, a change that many believe will benefit customers. The article that includes Professor Gross’s comments appears in “BDweek”, a publication that focuses on “regulatory news and compliance best practices.”
Saying that she finds the decision to be “flawed”, Professor Gross is quoted as saying, “…FINRA should allow investors to elect to use a ‘majority-public’ panel (one non-public and two public arbitrators), while having the default be the all-public panel.”
The entire article is available here.