Analysis: Do arbitration pacts go against clients’ best interests?
Tamar Frankel, School of Law
A state regulator is taking issue with arbitration agreements many registered investment advisers require their clients to sign when they open accounts, saying they conflict with a fundamental duty to serve their clients’ best interests…
“Even if the practice is legal, it could raise questions among potential clients about the adviser’s integrity, in a relationship rooted in trust, not a contract. Asking a client to sign a waiver can undermine that trust early in a relationship.”