⚖️Proposed Changes to FINRA Arbitration Rules and Their Impact
Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Amend the Codes of Arbitration Procedure To Make Clarifying, Technical, and Procedural Changes to the Arbitrator List Selection Process
Summary
The SEC is considering a proposed rule change from FINRA to amend the Codes of Arbitration Procedure related to the selection process for arbitrators. Key adjustments aim to increase the representation of non-chair-qualified public arbitrators and streamline administrative practices within arbitrations, ensuring more effective dispute resolution protocols. External stakeholder input on this proposal is also invited.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The regulatory text outlines proposed changes to FINRA's arbitration procedures, directly impacting compliance obligations for businesses in the financial sector. The amendments to the arbitrator selection process will affect dispute resolution, influencing operational risk and legal costs for companies involved in arbitration.