For many years, all claims that a registered representative had against a broker/dealer was subject to mandatory arbitration, by virtue of the representative’s association with the National Association of Securities Dealers, Inc.
However, on January 1, 1999, the NASD changed the Rule 10201 (Required Submission), relating to the arbitration of employment discrimination claims. That provision is now FINRA Rule 13201:
A claim alleging employment discrimination, including sexual harassment, in violation of a statute, is not required to be arbitrated under the Code. Such a claim may be arbitrated only if the parties have agreed to arbitrate it, either before or after the dispute arose. If the parties agree to arbitrate such a claim, the claim will be administered under Rule 13802.
Therefore, brokers should carefully consider their options when filing a discrimination or sexual harassment claim, as the case may be more appropriate for a court proceeding, rather than an arbitration.
Think you might have a claim against a brokerage firm? Give us a call, let’s find out. 212-509-6544