FINRA recently requested comments on its engagement initiatives, which include investor education and outreach. In response to the request for comments, the Georgia State Law Investor Advocacy Clinic joined with twelve other clinical professors to request that FINRA ensure its engagement programs support clinics that offer investors free legal services in disputes with their brokers.
The comment letter, available in full here, advocates for financial support of law school securities arbitration clinics. The clinics began twenty years ago after regulators recognized that investors will smaller claims were unable to obtain legal advice. Securities arbitration clinics fill this gap in representation. In addition to representing investors in FINRA proceedings, securities arbitration clinics engage in important investor education work and collaborate with regulators to identify and solve problems unique to small investors. Securities arbitration clinics are not able to ensure that all small investors receive assistance, and additional funding is necessary for them to help the investing public.