SEC Approves Amendment to Narrow Definition of Public Arbitrator

In recent years FINRA has narrowed the definition of "public arbitrator" to reduce the connections of the non-industry arbitrator to the securities industry.  Effective June 9, 2008, FINRA will add an annual revenue limitation to the definition of public arbitrator, set forth in the Code of Arbitration Procedure for Customer Disputes and the Code of Arbitration Procedure for Industry Disputes. The amendment, which was approved by the Securities and Exchange Commission, seeks to ensure that individuals with ties to the securities industry may not serve as public arbitrators in FINRA arbitrations