A Financial Industry Regulatory Authority hearing panel ruled that Charles Schwab can prohibit its customers from bringing class-action lawsuits. The panel said the ban violates FINRA's rules but those rules conflict with the Federal Arbitration Act and are therefore not enforceable. The ruling is expected to sway other brokerage firms to follow suit. "... you have a fairly well-developed decision here. It's up to our individual members to determine if they will adopt a class-action ban," said Kevin Carroll, associate general counsel at SIFMA. Learn more at SIFMA's Pre-Dispute Arbitration Resource Center.
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