As part of Public Investors Advocate Bar Association Hill Day, students in Miami Law's Investor Rights Clinic participated with experienced securities attorneys in meetings with the offices of seven U.S. senators and representatives to advocate for action on investor protection measures.
"Participating at PIABA Hill Day was a great opportunity as an intern to understand how meaningful the work done in the Investor Rights Clinic is and to contribute to the fight for justice that retail investors need," said 2L Luis Guijarro.
The Investor Rights Clinic provides legal representation to investors of modest means who have suffered investment losses due to the misconduct of their broker or brokerage firm but cannot obtain legal representation due to the relatively small size of their claim. Clients of the IRC must file their claim in Financial Industry Regulatory Authority arbitration due to mandatory arbitration clauses in their agreements with their brokerage firms.
"I have really enjoyed my time in the Investor Rights Clinic here at UM, so the opportunity to advocate for funding for more investor protection clinics across the country was both thrilling and rewarding," said 2L Danielle Lowsky.
In addition to client representation, the IRC also conducts advocacy for investor protection. In June, IRC students met with the offices of seven lawmakers, including two senators and five representatives. The agenda for these meetings focused on three aspects related to access to justice for investors in the world of mandatory arbitration: Some investors receive an award for damages after arbitration but cannot collect the monetary compensation due to the financial insolvency of the brokerage firm. Other investors abandon investment-loss claims entirely because of the cost of proceeding in expensive non-FINRA arbitration forums. And still, others cannot find legal representation at all.
"Participating in meetings with congressional offices to advocate for the Investor Justice Act has been an invaluable experience that has deepened my understanding of the pressing need for accessible legal representation for investors," said J.D./M.B.A. student Connor Jaffe. "This experience has not only honed my advocacy skills but has also given me firsthand insight into the power of legal advocacy as I pursue a career as an attorney."
The students received training through a PIABA webinar to prepare for the meetings. They familiarized themselves with the three agenda items, focusing on the Investor Justice Act, which would provide securities clinics (like the IRC) the opportunity to apply for matching grants from a fund administered by the Securities and Exchange Commission. This is important because there are currently only 10 securities clinics operating nationwide, and many securities clinics have closed due to lack of funding. IRC students spoke directly to congressional aides to advocate for support of the act.
"As an investor rights clinic intern, it was a valuable experience to advocate for the Investor Justice Act which will support investor protection clinics across the country in continuing to provide legal representation in FINRA securities arbitration to retail investors who need it the most," said 2L Chester Bancroft.
"Each of these students took full advantage of the opportunity to advocate for investors and gain insight into the way laws are made," IRC director Scott Eichhorn said. "We hope that our advocacy raised awareness and support for these really important investor protection issues."
Read more about Miami Law's clinics.
