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

You are the best attorneys in the country.

CC

LATEST NEWS AND ARTICLES

May 9, 2025
FINRA Suspends Former Wells Fargo Advisor Over Unauthorized Transfer in Elderly Client's Account

FINRA has fined and suspended former Wells Fargo financial advisor Jarrett Thomas after he executed a $50,000 transaction for an elderly client despite being informed that she was no longer capable of managing her finances.

May 8, 2025
All 50 States Now Aligned on Annuity Sales Standards

The annuity industry officially has secured uniformity in sales regulations across all 50 states.

May 7, 2025
Jury Finds Investment Advisor Liable for Failing to Disclose Annuity Commissions

A federal jury in Massachusetts has found investment adviser Jeffrey Cutter and his firm, Cutter Financial Group, liable for violating federal securities law by failing to disclose significant upfront commissions and conflicts of interest related to an annuity replacement scheme.