U.S. securities watchdog optimistic on fraud intervention rule

Wall Street’s industry-funded watchdog is optimistic that its plan to let securities arbitrators immediately report frauds they learn about in the middle of a case will finally take effect. “I feel comfortable that the rule is likely to go forward,” Linda Fienberg, the Financial Industry Regulatory Authority’s arbitration head, told reporters in New York on Wednesday. The watchdog runs its own arbitration system, which is used by brokerages and investors to resolve legal disputes. The U.S. Securities and Exchange Commission is now taking a close look at the rule FINRA wants to impose, the most recent development in a four-year process. The rule, if approved, would let arbitrators stop in the middle of a case to tell FINRA’s staff about possible frauds they learn of that could hurt the investing public. More on Reuters here.