The following is a statement from William Beatty, Washington Securities Director and president of the North American Securities Administrators Association (NASAA) regarding today’s release of the Consumer Financial Protection Bureau’s (CFPB) arbitration study and report to Congress.

“NASAA commends the CFPB and Director Cordray for bringing fresh and relevant research to the debate over the imposition of mandatory arbitration agreements by financial service providers. We hope the CFPB’s findings will encourage the SEC to use the authority the agency was granted in the Dodd-Frank Act to investigate the impact of similar clauses used by broker dealers and investment advisers, and prohibit or restrict their use ‘in the public interest and for the protection of investors.’ State securities regulators believe that investor confidence in fair and equitable recourse is critical to the health of our securities markets and long-term investments by retail investors.”

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