Tag Archives: Arbitration

Proposal to Amend FINRA Rules 12214 and 13214 in effect

Proposal to Amend FINRA Rules 12214 and 13214 to Provide That FINRA Will Pay Each Arbitrator a $200 Honorarium to Decide Without a Hearing Session a Contested Subpoena Request or a Contested Order for Production or Appearance Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a … Continue reading Proposal to Amend FINRA Rules 12214 and 13214 in effect

Sanction Guidelines Revised by FINRA

The Sanction Guidelines were revised by FINRA to instruct adjudicators in the disciplinary process to consider customer-initiated arbitrations that result in adverse arbitration awards or settlements when assessing sanctions.  Thus, when a respondent’s disciplinary history, and history of arbitration awards and arbitration settlements together with the violation found in a disciplinary case, form a pattern, … Continue reading Sanction Guidelines Revised by FINRA

Simplified Arbitration Approved by SEC

The Code of Arbitration Procedure for Customer Disputes (Customer Code) and the Code of Arbitration Procedure for Industry Disputes (Industry Code, and together with the Customer Code, the Codes) have provided two options for administering cases with claims involving $50,000 or less, excluding interest and expenses. The default option for arbitration was a decision by … Continue reading Simplified Arbitration Approved by SEC

SEC Request for Comment: Code of Arbitration Procedures

The SEC published a proposed rule change to amend FINRA Rules 12600 and 12800 of the Code of Arbitration Procedure for Customer Disputes (”Customer Code”) and 13600 and 13800 of the Code of Arbitration Procedure for Industry Disputes (“Industry Code,” and together with the Customer Code, the ”Codes”), to amend the hearing provisions to provide … Continue reading SEC Request for Comment: Code of Arbitration Procedures

Deadline for Comments on Regulatory Notice 17-33 – Code of Arbitration

FINRA seeks comments on emerging issues facing the industry, regulatory initiatives, rulemaking proposals, and other areas of regulatory interest. When respondents are no longer in business, recovery of arbitration awards against them often is unavailing. Accordingly, FINRA is proposing to amend the Code of Arbitration Procedure for Customer Disputes (Code) to expand a customer’s options … Continue reading Deadline for Comments on Regulatory Notice 17-33 – Code of Arbitration

Is There a Place for Non-Attorney Representation Firms in Arbitration?

The FINRA Codes of Arbitration and Mediation Procedure (“Codes”) permits non-attorney representation of  clients in securities arbitration and mediation subject to certain exceptions.  FINRA is currently conducting a review of the efficacy of continuing to allow such representation.  Typically, while some parties may be represented by relatives or friends who assist with case preparation or … Continue reading Is There a Place for Non-Attorney Representation Firms in Arbitration?

Forum Selection Involving Customers & Associated Persons

Based upon recent federal appellate court and Second Circuit decisions, the Financial Industry Regulatory Authority (“FINRA”) released guidance regarding forum selection provisions between member firms and their customers and employees (Regulatory Notice 16-25).  The guidance was the result of an apparent conflict between the court decisions and FINRA rules regarding arbitration. In the federal appellate … Continue reading Forum Selection Involving Customers & Associated Persons