FINRA Announces New Rule To Expedite Arbitration Cases For Those Who Are Ill Or Over 75
From the Desk of Jim Eccleston at Eccleston Law:
The Financial Industry Regulatory Authority (FINRA) intends to amend its rules to permit expedited arbitration cases for parties who are 75 or older or are seriously ill.
FINRA’s new rule, which would be added to the Codes of Arbitration Procedure, would permit any party to request accelerated processing of an arbitration proceeding if they are: 1) at least 75 years old; or 2) certify that they have received a medical diagnosis and prognosis, and that based on that information they have a reasonable belief that accelerated processing is necessary to prevent prejudicing their interest in the arbitration. FINRA currently offers a voluntary program to expedite arbitration proceedings for parties who are at least 65 years old or have a serious health condition. FINRA noted that the current program “does not…provide for shortened, rule-based case processing deadlines for parties or provide arbitrators with instruction on how quickly the arbitration should be completed.”
Hence, the new rules impose guidelines pertaining to how accelerated cases should be handled. For instance, the new rules mandate an arbitration panel in an accelerated case to render the award within 10 months. Additionally, the new rules would shorten the deadlines for serving an answer and responding to a third-party claim from 45 days to 30 days.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.
Tags: eccleston law, finra, arbitration
