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SEC panel explores pros, cons of RIA ability to require arbitration

Two street signs, including Wall Street, in the center of NYC's financial district.
Photo: Jeff Hutchens/Getty Images

Julie DiMauro

2 min read
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Contractual provisions to arbitrate disputes can be less-than-transparent and restrictive — but also sometimes cheaper and less burdensome than litigation.

The SEC’s Investor Advisory Committee met this week to discuss mandatory arbitration clauses used by registered investment advisers (RIAs) in client contracts, comparing practices in the broker-dealer and state-registered RIA worlds.

The Commission’s Office of Investor Advocate is recommending that the agency steps up requirements for disclosure and transparency around

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