NASD Set to List Arbitration Cases on the Internet

Got a gripe against your broker? It will soon become easier to find out if you’ve got a case.

The National Assn. of Securities Dealers said Wednesday that it will make a “vast library” of securities arbitration decisions available to the public on the Internet, a move that was lauded by industry and consumer groups.

Starting June 1, the NASD’s dispute resolution department will publish online 24 hours a day the full text of arbitration cases listing the parties involved, the amounts awarded and the arbitrators involved, the NASD said.

Arbitration is a commonly used procedure to settle disputes between investors and brokerage firms rather than resorting to the courts. In most cases, investors are required by the contract they sign with their brokerage firm to handle complaints through arbitration rather than by suing the firm.

The online arbitration database is designed to make it easier and faster for people to get information about companies, arbitrators and issues in the securities business.

“It’s another tool investors can use to see if brokers have arbitration awards against them,” said Barbara Roper of the Consumer Federation of America. Also, “if you can tell how a particular arbitrator decided in a particular case, that would be very insightful.” That’s because the makeup of arbitration panels is agreed upon by both plaintiffs and defendants, she said.

The NASD also is working on a separate online system that will contain the disciplinary histories of its member brokers.

Beginning June 1, awards will be accessible via a link on the Web site of NASD Dispute Resolution, which handles 90% of securities-related disputes. Full texts of awards are free over the Web. Other services, such as summaries and analyses of specific awards, will be available for a fee.

To link up with the online library next month, go to https://www.nasdadr.com.