The self-regulatory organization knows which side its bread is buttered on. And it usually goes out of its way to help members, whether it be a slap on the wrist for a broker accused of spending client cash on lap dances or for a giant bank accused of failing to get clients a good price on stocks in their dark pool. They made sure brokers don’t have to tell clients how much their firm is paying them to shill stocks, and did their level best to keep much actually broker wrongdoing a secret. (It’s not FINRA’s fault that the SEC said it couldn’t do it anymore, but it’s still doing what it can to make the information inaccessible.) So FINRA’s sorry that Credit Suisse thinks its arbitration panels aren’t obsequious enough, but it’s really going to have to insist on this one.
Credit Suisse had required that disputes go through either the American Arbitration Association or JAMS (which was once the Judicial Arbitration and Mediation Service), instead of Finra, something lawyers for the advisers said put them at a disadvantage….
Finra said its rules did not permit firms to require that workers waive their rights, and added that member firms might be subject to disciplinary action if they failed to submit disputes to Finra arbitration.