SEC okays FINRA’s proposed new option for simplified arbitration

By John Filar Atwood The SEC has approved FINRA’s proposed amendment to its rules to provide a new option for simplified arbitration. Effective September 17, parties in arbitration with claims of $50,000 or less will be given an additional hearing option. Current procedure. Prior to the amendment, FINRA’s codes of arbitration procedure for customer and industry disputes provided two options for administering cases with claims involving $50,000 or less. The default option is a decision by a single arbitrator based on the parties’ pleadings and other materials submitted by the parties, and the alternative option is a full hearing with a single arbitrator. Under the customer code, a customer may request a hearing regardless of whether the customer is a claimant or respondent, and under the industry code, only the claimant may request a hearing. If a hearing is requested, it is generally held in person, and there are no limits on the number of hearing sessions…

Read more detail on Recent Securities Law posts –

This entry was posted in Securities Law and tagged , , , , , . Bookmark the permalink.

Leave a Reply