Friday, October 3, 2014

FINRA Arbitrator Selection Under Scrutiny by SEC

FINRA' proposal to remove arbitrators with even the slightest connection with the industry from its "public" panels is apparently causing some concern at the SEC. The Commission, which must approve any FINRA rule changes, has extended its review of a plan to restrict industry veterans from serving as arbitrators in many legal disputes between investors and brokerages, citing questions about whether the proposal complies with securities laws.

The plan to revamp how arbitrators are selected was filed by FINRA. The plan "raises questions" about whether it is in line with laws that require FINRA rules to protect investors, among other things, the SEC said in a notice published on Wednesday seeking additional input from the public.

For more information visit U.S. SEC to take deeper look at Wall St arbitration reform plan | Reuters


The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, and have represented parties in well over 700 securities arbitrations. We represent investors, financial professionals and investment firms, nationwide. For more information call 212-509-6544 or send an email.

Post a Comment