FINRA Intends To Promote Hybrid Arbitration Hearings

Posted on November 22nd, 2021 at 2:26 PM
FINRA Intends To Promote Hybrid Arbitration Hearings

From the Desk of Jim Eccleston at Eccleston Law:

The Financial Industry Regulatory Authority (FINRA) may permit remote participation in arbitration proceedings moving forward, according to FINRA chief executive Robert Cook. 

FINRA initially suspended all in-person arbitration hearings because of social distancing risks when the pandemic began in March 2020. In August, FINRA restarted in-person arbitration hearings in all of its 69 nationwide sites. However, there still exists demand to conduct arbitration proceedings over Zoom or to allow some witnesses to testify remotely, according to Cook. Prior to resuming in-person hearings, lawyers representing client claimants against brokerages or representatives in the FINRA arbitration system voiced concerns about remote arbitration. 

Additionally, the Public Investors Advocate Bar Association (PIABA) recently reported that remote arbitration hearings benefit brokerages and harm clients. PIABA subsequently urged FINRA to resume in-person arbitration hearings, and the self-regulator accommodated that request as vaccinations rates continued to climb and with certain, additional precautions. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

 

Tags: eccleston, eccleston law, finra, arbitration

Return to Archive

TESTIMONIALS

Previous
Next

Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.

LATEST NEWS AND ARTICLES

December 3, 2021
FINRA Issues Fine to Small Advisory Firm Over Material Misrepresentations

The Financial Industry Regulatory Authority has censured and issued a $250,000 fine to a Los Angeles-based advisory firm, WestPark Capital Inc., for making material misrepresentations pertaining to promissory notes offered by its parent company.

December 2, 2021
FINRA Imposes Suspension on Ohio-Based Advisor Over Outside Investments

The Financial Industry Regulatory Authority (FINRA) has issued a one-year suspension and $12,500 fine to an Ohio-based advisor, William LeBoeuf, who worked at Merrill Lynch and Cetera Advisor Networks when the violations occurred.

December 1, 2021
SEC Charges Former Illinois Edward Jones Advisor With Fraud

The Securities and Exchange Commission (SEC) has charged a former Illinois-based investment advisor, Ronald Molo, with defrauding three clients out of at least $800,000.