FINRA Updates Arbitration Panel Selection Procedures

Posted on January 4th, 2017 at 9:31 AM
FINRA Updates Arbitration Panel Selection Procedures

From the Desk of Jim Eccleston at Eccleston Law LLC:

New FINRA Rule 12403 gives parties more prospective arbitrators to choose from in selecting their panels. Under the current rule, the FINRA computer-generated list categorizes the arbitrators into three separate groups. The three groups include a list of 10 chair-qualified public arbitrators, a list of 10 public arbitrators and a list of 10 non-public arbitrators. The parties select their panel through a process of striking and ranking the arbitrators on each individual list. Each party is allowed to strike up to four arbitrators on the chair-qualified public list and four arbitrators on the public list.

However, under new FINRA Rule 12403, FINRA will allow the number of arbitrators on one of the three lists, the public arbitrator list, to increase from 10 to 15 candidates and allow the number of strikes to the public arbitrator list to increase from four to six. 

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of securities for financial advisors including CFP Board Defense, Transition Contract Review, Broker Litigation and Arbitration, Promissory Note Defense, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.  

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston, FINRA, FINRA Rule 12403, arbitrators, chair-qualified public arbitrators, non-public arbitrators, striking, ranking,

Return to Archive

TESTIMONIALS

Previous
Next

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.

February 20, 2024
Challenges Persist: Firms Struggle to Comply with Regulation Best Interest

FINRA's annual report for 2024 reveals a concerning trend among broker-dealers, with numerous instances of violations of Regulation Best Interest (Reg BI).

February 19, 2024
FINRA Flags Violations in 70% of Broker-Dealers' Crypto Communications

During a two-year-old targeted examination, the Financial Industry Regulatory Authority (FINRA) has identified potential violations in 70 percent of broker-dealers' communications about cryptocurrencies.