Wednesday, May 5, 2010

FINRA Proposes Expanding Arbitrator Lists

FINRA announced today that it will increase the number of arbitrators on each of the selection lists by 2 - bringing each list to 10 potential arbitrators. While the change will increase the number of selections for the parties, the number of strikes for each list will remain at 4, increasing the chances that the parties will have an arbitrator that they do not want.

While expanding the lists is undoubtedly good for everyone, this has the potential to be a significant problem. Far too often there are 5 arbitrators in a list that we need to strike, for whatever reason. Now there might be 7, with very little recourse if one of the three that we could not strike are appointed.

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