The Securities and Exchange Commission has approved a new rule that will limit motions to dismiss arbitration before investors present their case. This makes it all the more important to avoid consumer disputes in the first place.
The new rule responds to investor concerns about such motions. “Although arbitrators rarely grant (them), it is costly and time consuming for parties to defend motions to dismiss,” says Linda Fienberg, president, FINRA Dispute Resolution. “This new rule sharply limits the bases for making motions to dismiss and penalizes those who abuse the dismissal process.”