Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

New Rules Allow All Public Panel Option for FINRA Customer Arbitrations

FINRA filed a proposal with the SEC on October 25, 2010 that would change the rules in regards to investors filing arbitrations against brokers or brokerage firms in FINRA’s Dispute Resolution forum. These new rules, which were just approved by the SEC, allow investors the option of selecting an all public arbitrator panel. Previously, the FINRA Code of Arbitration Procedure for Customer Disputes required an industry-affiliated arbitrator in all claims exceeding $100,000 or more in damages—sometimes referred to as “three-arbitrator panel customer disputes.”Industry experts theorize that the fast-track approval of these new arbitration rules, which were accomplished in only three months, reflects pressures generated in part by the SICA Fairness Study. The mandate issued by the Dodd-Frank Act required the SEC to conduct a review of securities arbitration. Results from this study indicate that most investors perceived FINRA arbitrators to be biased.The use of pre-dispute arbitration clauses in customer agreements has become relatively standard practice for most broker-dealers. Due to this fact, FINRA could no longer justify insistence on an industry-affiliated arbitrator on all disputes for claims exceeding $100,000. Meyer Wilson represents clients who have been harmed by investment fraud. For more information, contact Meyer Wilson by calling toll free or filling out our online form.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram