SEC Approves New NASD Arbitration Code for Customer Disputes

Today, after a long wait, the SEC approved the NASD's rewrite of the Code of Arbitration.  A complete re-write of the Code to make it more user-friendly, there are now three separate codes -- one for customer disputes, one for industry disputes, and one for mediations (which had been approved by the SEC earlier).  Among the substantive changes are: broader authority for arbitrators to impose sanctions; enhanced qualifications for Arbitrator Chairs; changes in discovery procedures; and improved arbitrator selection provisions.  See the SEC's press release and its Order; see also the NASD's press release.