Protecting the Public, Not Anyone's Turf: The Unlicensed Practice of Law in Securities Arbitration

Abstract

This Article states a case for an advisory opinion in California precluding nonlawyers from representing investors for compensation in securities arbitration. The Article first discusses the legal standards for determining what activities constitute the practice of law in California, including an analysis of the Supreme Court of California's recent decision expanding the definition of the "practice of law" to include representation in the private arbitration context. Next, it discusses the nature of investor representation in securities arbitration and details the extent to which nonlawyer representation compromises the rights of investors. Finally, this Article addresses the various harms to the public that result from nonlawyer representation in arbitration, including an analysis of the arguments maintained by nonlawyer representatives in favor of the status quo.