FINRA to Give Greater Choice of Public Arbitrators

Parties selecting an arbitration panel could have more public arbitrators to choose from, according to a June 22 Financial Industry Regulatory Authority rule proposal.

Parties to a FINRA arbitration select their arbitration panel from computer-generated lists of arbitrators. Currently, parties receive three lists of 10 arbitrators each: 10 public arbitrators; 10 chair-qualified public arbitrators; and 10 non-public, or industry, arbitrators.

Under the proposal, FINRA would amend Rule 12403, governing cases with three-member arbitration panels, by adding five more names to the public arbitrator selection list. The self-regulatory organization would also increase from four to six the number of strikes ...