First, the money at stake can be significantly greater—to the tune of hundreds of thousands and millions rather than under a hundred dollars.
Second, the wrong might be the result of the action of a single advisor rather than the common companywide practice at an advisory firm.
Last December, a Finra task force urged arbitrator standards to be stiffened and the pay to be increased to attract higher quality professionals, but it made no recommendation on whether mandatory arbitration should continue to be allowed.
A Finra spokesperson couldn’t say if the agency had discussed mandatory arbitration with the Consumer Financial Protection Bureau.
An SEC press aide said she was trying to find out if there were any communications on the issue between her agency and the consumer bureau.