Large arbitration cases involving more than $10 million in claims can now customize the arbitration process through The Financial Industry Regulatory Authority’s latest arbitration pilot program. The program, which launched July 2, gives the parties of such cases increased options over where to hold arbitration hearings, as well as more say in the arbitrators’ selection and qualifications. The program also enables the parties to bypass certain FINRA arbitration rules.
"In response to the increasing number of very large cases, we wanted to introduce a more formal approach to give parties greater flexibility and more control over the administration of their case,” said Linda Fienberg, President of FINRA Dispute Resolution, in a statement.
Participation in the program is voluntary, and all parties involved in the case must be represented by counsel and be willing to pay any additional costs incurred through the program. Customization options available include the option to:
• exercise additional control over the method of arbitrator appointment and the qualifications of arbitrators;• hire non-FINRA arbitrators;• develop customized procedures for exchanging information prior to the hearing;• have expanded discovery options such as depositions and interrogatories; and• choose from a wider selection of facilities.
FINRA plans to send out letters to eligible parties to inform them of their right to participate in the program. For more information, contact FINRA at http://www.finra.org/.
