The Securities and Exchange Commission's Investor Advisory Committee plans to discuss at its Dec. 10 meeting the use and scope of mandatory arbitration clauses by RIAs as well as the potential drawbacks of young investors' use of social media — mainly recommendations from "finfluencers."
A panel of industry experts — including Kevin Carroll, deputy general counsel for the Securities Industry and Financial Markets Association and Robin Traxler, deputy general counsel for the Financial Services Institute — will discuss RIAs' use of mandatory arbitration "and examine the impact of such clauses," according to a notice on the SEC's website.
The panel will also "compare the use of mandatory arbitration clauses" by state-registered advisors and FINRA registered broker-dealers.
The committee will also debate a recommendation on protecting investors in their interactions with finfluencers.
