Should Fiduciary Advisers Swear Off Mandatory Arbitration?

The vibe is celebratory. There are coffee, doughnuts and croissants on the side table, smiles all around the conference room. On behalf of your team, which could be inside a brokerage firm or a registered investment adviser, you push paperwork across the table to open an advisory account.

Smiling, your soon-to-be client pulls out a pen and scans one of the forms. But he hesitates, and his brow furrows as he reads aloud the predispute arbitration clause: “All parties to this agreement are giving up the right to sue each other in court, including the right to trial by jury.…”

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