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

ÍøÆØ³Ô¹Ï

FINRA Proposes Changes To Arbitration Selection Process

Posted on January 12th, 2023 at 3:38 PM
FINRA Proposes Changes To Arbitration Selection Process

From the Desk of Jim Eccleston at ÍøÆØ³Ô¹Ï.

The Financial Industry Regulatory Authority (FINRA) has proposed rule changes to “enhance the transparency of the arbitrator selection” and other alterations aimed to improving its dispute resolution services.

FINRA currently is seeking approval from the Securities and Exchange Commission (SEC) prior to enforcing the rule changes. Following an investigation, which concluded that there was no evidence that there was manipulation in the arbitrator selection process, FINRA determined that it would provide “greater clarity” regarding its arbitration processes. Under the new rule proposal, FINRA would codify its current practice of utilizing both an algorithm and “conducting a manual review for conflicts of interest prior to sending an arbitrator list” to disputing parties, according to the filing.

The new rule proposal additionally requires for a FINRA director to “provide a written explanation” to parties about any decision to grant or deny arbitrator removal requests. The proposal with further require FINRA to “clarify for forum users that parties may challenge an arbitrator for cause at any point after receipt of the arbitrator lists until the first hearing session begins”, according to the filing. FINRA’s proposed rule changes would additionally permit videoconferencing as an alternative for prehearing conferences and for disputes involving $50,000 or less.

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, finra

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

If the regulators are after you, and are trying to make a case against you, and you are going to contest their allegations against you, make sure you have the best securities industry defense lawyers, ÍøÆØ³Ô¹Ï Firm. My case was spun into a combination of penalties including fines, cash settlements, CE courses and suspension. They were the best I have seen in action. When all was said and done, they had done their magic, my situation was negotiated and settled with a simple "letter of caution" and a case closed without action. It is the most important legal business decision you will ever make, make it ÍøÆØ³Ô¹Ï.

Rick R.

LATEST NEWS AND ARTICLES

1783957061 Law
July 13, 2026
FINRA Warns of Growing Risks From Finfluencers and AI-Driven Investment Content

Financial Industry Regulatory Authority (FINRA) regulators are raising concerns about the increasing influence of social media personalities and artificial intelligence (AI) on retail investors, particularly those managing their own investments without professional guidance.

1783615970 Law
July 9, 2026
FINRA Suspends Former Branch Manager for Supervisory Failures Linked to Excessive Trading and Churning

A former regional branch manager at a broker-dealer has agreed to Financial Industry Regulatory Authority (FINRA) sanctions after the regulator found that he failed to supervise registered representatives who engaged in excessive trading and churning of customer accounts.

1783525964 Law
July 8, 2026
SEC Sanctions David Lerner Associates for Regulation Best Interest Violations

David Lerner Associates has agreed to settle Securities and Exchange (SEC) charges alleging violations of Regulation Best Interest (Reg BI) that resulted in unnecessary costs to retail investors, according to InvestmentNews.