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Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Thursday, February 18, 2010

FINRA Proposes Rule Change Addressing Attorney Representation of Non-Party Witnesses

FINRA filed with the SEC a proposed rule change that would explicitly permit non-party witnesses to be represented by attorneys in arbitration proceedings.  The release explains that in customer disputes against the brokerage firm the registered representative who dealt with the customer will frequently be a witness.  Currently, whether the witness is able to be accompanied by an attorney is within the discretion of the arbitration panel.  While the release states that Finra is not aware of arbitrators' denying a witness's request to have his attorney present, it believed that fairness requires that the rules explicitly permit this. 

SECURITIES AND EXCHANGE COMMISSION (Release No. 34-61517; File No. SR-FINRA-2010-006)
February 16, 2010 Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of Proposed Rule Change to Amend the Codes of Arbitration Procedure to Provide for Attorney Representation of Non-party Witnesses in Arbitration

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