No Gag Clauses in Financial Services Settlements
20th October 2014
In an October Regulatory Notice, FINRA, in recognizing the contribution that whistleblowers make, reiterated that it is a violation of FINRA Rule 2010 to include confidentiality provisions in settlement agreements or any other documents. These include confidentiality stipulations made during a FINRA arbitration proceeding that prohibit or restrict a customer or any other person from communicating with the Securities and Exchange Commission (SEC), FINRA, or any federal or state regulatory authority regarding a possible securities law violation.
By: Ray Moss
In:
Investor/Financial Advisor Legal Alert