{"id":1437,"date":"2014-04-25T13:35:56","date_gmt":"2014-04-25T13:35:56","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2014\/04\/charles_schwabs_barring_of_cus"},"modified":"2022-03-11T09:18:52","modified_gmt":"2022-03-11T15:18:52","slug":"charles-schwabs-barring-of-cus","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/charles-schwabs-barring-of-cus\/","title":{"rendered":"Charles Schwab\u2019s Barring of Customers from Joining Class Actions Violated FINRA Rules, Says Board of Governors"},"content":{"rendered":"

\t\t\t\tIn a victory for the Financial Industry Regulatory Authority, its Board of Governors has determined that Charles Schwab & Co. (SCHW) violated the self-regulatory organization’s rules when it added waiver language to agreements that prohibited customers from becoming part of any class action cases against the financial firm. Schwab has agreed to settle these claims with a fine of $500,000. Also, it will tell all its customers that the requirement is no longer in effect. <\/p>\n

Schwab made amendments to the customer account agreement of over 6.8 million investors in 2011. The move came after it settled a class action securities case accusing the broker-dealer of misleading thousands of customers about its YieldPlus money market fund. (The fund sustained huge losses during the 2008 economic crisis, and to resolve the claims, Schwab agreed to pay $235 million.) <\/p>\n

Included in the amendments were waiver provisions mandating that customers consent that any claims against the firm could only be arbitrated individually. Also, arbitrators would not be able to consolidate consolidated claims for more than one party. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

In a victory for the Financial Industry Regulatory Authority, its Board of Governors has determined that Charles Schwab & Co. (SCHW) violated the self-regulatory organization’s rules when it added waiver language to agreements that prohibited customers from becoming part of any class action cases against the financial firm. Schwab has agreed to settle these claims […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3840,3752],"tags":[],"class_list":["post-1437","post","type-post","status-publish","format-standard","hentry","category-charles-schwab","category-financial-firms"],"yoast_head":"\nCharles Schwab\u2019s Barring of Customers from Joining Class Actions Violated FINRA Rules, Says Board of Governors — Investor Lawyers Blog — April 25, 2014<\/title>\n<meta name=\"description\" content=\"In a victory for the Financial Industry Regulatory Authority, its Board of Governors has determined that Charles Schwab & Co. 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