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U.S. SEC approves limits for arbitrators with industry ties

The Securities Exchange Commission on Thursday restricted the ability of financial industry veterans to judge investor arbitration cases against brokerage firms, pleasing investors who claimed they injected pro-industry bias into the process. The rule change, proposed by the Financial Industry Regulatory Authority (FINRA), an industry-funded group tasked by Congress to oversee securities firms, is one of the most significant changes to Wall Street’s system for resolving disputes between investors and brokerages in years, lawyers said. More on Reuters here.

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