Thrivent, SEC Grilled by DC Circuit on FINRA Arbitration Appeal

A federal appeals panel appeared skeptical of arguments on FINRA arbitration requirements for broker-dealers, questioning lawyers for Thrivent Financial for Lutherans and the SEC on whether to remand their dispute over an arbitration rulemaking petition.

During oral arguments Monday, judges from the US Court of Appeals for the District of Columbia Circuit pressed Thrivent’s lawyer to show precedent for claims that the Financial Industry Regulatory Authority unlawfully prohibits members from using private arbitration agreements, while also expressing doubts about the Securities and Exchange Commission’s “bare-bones” rationale for denying a petition to rein in the self-regulatory organization.

Allowing broker-dealers to include ...