ASA Statement on Senate Banking Arbitration Hearing
WASHINGTON – Ahead of today’s Senate Banking hearing, the American Securities Association (ASA) raised concerns regarding policy proposals that would severely harm America’s retail investors by banning the use of arbitration in customer agreements.
“Arbitration has a proven track record as an efficient and effective dispute mechanism for American investors,” said ASA CEO Chris Iacovella. “ASA strongly opposes attempts to politicize arbitration in a way that will only benefit the trial bar, while American working families suffer from increased litigation, higher costs, and greater dispute resolution delays.”
The Financial Industry Regulatory Authority (FINRA) has found that arbitration disputes take slightly over a year to resolve, and that a large chunk of cases are ultimately settled or withdrawn before a decision by an arbiter can be made. The evidence is clear that arbitration is beneficial for consumers and that it has worked well in practice for decades.
Last November, ASA sent a letter to the House Financial Services Committee registering its strong opposition to H.R. 2620, a bill that would ban the use of arbitration in customer agreements.
ASA’s regional financial services companies work in communities across the country to create jobs, grow the economy, and increase prosperity for all Americans. The ASA exclusively represents the capital market and private client interests of its members and seeks to promote free market principles making it easier to access financial advice and capital. ASA members help Americans save for retirement, provide Main Street businesses with capital to grow, and advise hardworking Americans how to create and preserve wealth. For the latest updates follow @AmerSecurities and learn more at http://americansecurities.org/.