Supreme Court Rules on Arbitration Clauses in Customer Agreements

Developments of Note

1. Supreme Court Rules on Arbitration Clauses in Customer Agreements

2. NASD and MSRB Agree to Harmonize Rules Governing Sales of Mutual Funds and 529 Plans

3. ICI Requests 90-Day Extension of the Compliance Deadline for FINCEN’s New Correspondent Account Rule

4. Basel Committee Issues Revised Corporate Governance Guidelines

5. FRB Grants 23A Exemption for Foreign Tax Sharing Agreements

Other Item of Note

6. Federal Banking Agencies Issue QIS4 Summary

The United States Supreme Court issued a significant opinion for financial institutions with customer agreements containing arbitration clauses. Financial institutions trying to compel arbitration often face "void contract" arguments from parties resisting arbitration that claim the underlying contract is void under state law and no enforceable arbitration exists because the entire contract, including the arbitration