FINRA to appeal class-action ruling favoring Schwab

The Financial Industry Regulatory Authority will appeal a ruling that allows Charles Schwab Corp. to require customers to waive their right to participate in class-action suits, a spokeswoman said on Tuesday. “We are in the process of filing an appeal,” a FINRA spokeswoman told Reuters in an emailed statement. The decision comes after a hearing panel decision last Thursday that upheld Schwab’s late 2011 move to require clients to waive their class-action rights. Schwab’s action violates FINRA’s rules, but the rules themselves violate the National Arbitration Act, the panel found.
More in the Chicago Tribune here.