New Recommendations by the FINRA Dispute Resolution Task Force
From the Desk of Jim Eccleston at Eccleston Law LLC:
This is the first in a series of posts to discuss the 51 recommendations the FINRA Dispute Resolution Task Force (Task Force) has made to the National Arbitration and Mediation Committee (NAMC). NAMC is FINRA’s standing Board advisory committee.
To begin, the Task Force recommends that in instances where all non-public arbitrators are struck from the arbitrator selection process, FINRA will provide a new list of 10 public arbitrators. Even though FINRA staff generally agreed with the Task Force’s recommendation, the staff believed that the panel selection process likely would incur unnecessary expenses and additional time in vetting an additional list of 10 public arbitrators.
Therefore, FINRA proposed to amend FINRA Rule 12403 of the Code of Arbitration Procedure for Customer Disputes (Customer Code), to increase the number of public arbitrators on the list that FINRA sends parties during the arbitration panel selection process from 10 to 15 arbitrators in cases with three arbitrators. The SEC approved the proposed rule change on September 14, 2016 and the change became effective on January 3, 2017.
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