Charles Schwab & Co. Charged With FINRA Violations

The Financial Industry Regulatory Authority has filed a complaint alleging that Charles Schwab & Company (“Schwab”) violated FINRA rules by including a provision in its customer agreement requiring customers to waive their rights to participate in class actions against the firm.

According to FINRA’s complaint, Schwab changed its customer account agreement in October 2011 to include the class action waiver language, as well as a separate provision requiring customers to agree that arbitrators in FINRA arbitration proceedings would not have the authority to consolidate the claims of multiple parties.

FINRA claims that both provisions violate FINRA rules governing language that its members may include in customer agreements.

Investors nationwide who have suffered an investment loss, and who may have a FINRA arbitration claim, may contact the Florida securities lawyers at Rabin Kammerer Johnson for a free and confidential consultation by calling toll free at 877.915.4040.