Tr?id=566623520170033&ev=PageView&noscript=1

FINRA's Overhaul of Arbitrator Selection System Moves Forward

Posted on October 3rd, 2023 at 1:11 PM
FINRA's Overhaul of Arbitrator Selection System Moves Forward

From the desk of Jim Eccleston at Eccleston Law 

FINRA has received approval to revamp its procedures for removing arbitrators from the three-member panels responsible for arbitration matters involving claims between and among financial advisors, their firms, and customers.

The changes, among other things, formalize FINRA's existing practice of allowing arbitrators to be replaced before an arbitration hearing commences. They also mandate that the director of dispute resolution services must document the reasons for accepting or rejecting a request to remove a specific panel member.

Under the new rule, arbitrators can be removed due to various conflicts of interest, such as prior dealings with a party involved in a particular case. The rule further requires the director of dispute resolution services to meticulously review the arbitrators' names on the shortlist for a given case to identify and address these conflicts.

 

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

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

You are the best attorneys in the country.

CC

LATEST NEWS AND ARTICLES

1787679428 Law
August 25, 2026
Ameriprise Broker Sues LPL-Affiliated Practice Over Use of "Kindred" Name

AdvisorHub reports that an Ameriprise Financial broker in Oklahoma has filed a trademark infringement lawsuit against an LPL Financial-affiliated practice over its use of the word "kindred" in its name.

1787592120 Law
August 24, 2026
Sophisticated Voice Phishing Attacks Target Major Wall Street Firms

According to ThinkAdvisor, hackers recently launched a series of sophisticated cyberattacks against major Wall Street firms, including prominent hedge funds and private equity companies.

1787342003 Law
August 21, 2026
Rising Market Leverage Raises Concerns About Financial Stability Despite Low Volatility

The leverage that has helped drive the U.S.