Anger over losses during hard times often plays a larger role in an investor's decision to file an arbitration claim than the actual merits of a case, he said. "Their perception of the facts gets colored," says Dalziel.
Those perceptions aren't likely to go away quickly if Finra's proposal is adopted. "What's going to happen now is that people will leave the industry and these things will still be available about them for ten years," he says.
Copyright (c) 2010, Dow Jones. For more information about Dow Jones' services for advisors, please click here.