In addition to their work with small investors with legal claims against their brokers, Investor Advocacy Clinic interns actively participate in the regulatory process, representing the voice of small investors. If a dispute arises between an investor and her investment broker, it generally must be resolved in FINRA’s Dispute Resolution forum.
FINRA, the Financial Industry Regulatory Authority, is a self-regulatory organization that regulates the securities industry. FINRA’s Dispute Resolution Forum is resolves more securities related disputes than any other forum in the United States.
During their time in the Investor Advocacy Clinic, interns monitor FINRA rule proposals and formally evaluate each rule proposal that might impact a small retail investor. Interns then prepare and file comment letters concerning the proposed regulation. Comment letters evaluate the proposal from the small retail investor’s perspective. Students describe their support or opposition to the proposal and often offer alternative solutions for addressing the problem FINRA seeks to resolve.
Since 2014, interns have evaluated and commented on seven FINRA rule proposals. FINRA responds to each comment letter and has even made some of the changes suggested by our interns.
Interested in learning more about our participation in the regulatory process or reading our comments? Take a look at these clinic blog posts for more information: