FINRA's controversial rule change proposal, which would effectively force every arbitration case to a full hearing, regardless of the merits of the claim, is before the SEC for approval.
The comment period ends on April 10, 2008. The claimant's bar has submitted their glowing support for the ban (not too much of a surprise there), there have been very few comments from the defense bar.
Given the fact that this rule means that firms will be forced to pay for representation at multiple hearing sessions in every case that anyone cares to file against them, one would imagine there would be strong opposition to this proposal from the broker-dealers.
Yet not one letter in opposition from a brokerage firm.
I previously wrote about this proposal here.
The text of the rule proposal available at
http://www.sec.gov/rules/sro/finra/2008/34-57497.pdf
Comments can be submitted online.
