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

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

February 23, 2024
Advisor Accepts Industry Bar Amid FINRA Probe into Outside Business Activities

John A. Dougherty, a veteran advisor with 23 years of experience, agreed to an AWC (Acceptance, Waiver, and Consent) after refusing to cooperate with a regulatory investigation into allegations of undisclosed outside business activities.

February 22, 2024
Key Considerations for Advisors When Assessing the Financial Soundness of Annuities

While rating agencies like Fitch and S&P Global Ratings generally highlight the strength of annuity issuers, advisors still should scrutinize certain factors in their assessment process.

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.