Analysis: Do arbitration pacts go against clients’ best interests?

in 2013, Newsmakers, Reuters, School of Law, Tamar Frankel
February 13th, 2013

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…

Expert quote:

“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.”

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