Finra Arbitration Futility

There is an interesting article in the Wall Street Journal about Finra arbitration and whether some of the new rules will help investors with grievances.

Finra or the Financial Services Regulatory Authority is a securities industry regulator (that happens to be funded by the securities industry) that, among other things, governs disputes between investors and brokers.

The WSJ piece is well worth the read--here is a great snippet:

"For many investors, Finra arbitration seems to resemble a medical-malpractice case heard in a court run by the American Medical Association, with a jury made up partly of doctors. In a 2008 survey of more than 1,000 investors, 61% disagreed with the statement that "the arbitration process was fair for all parties.""