FINRA Files Proposal for All-Public Arbitration Panels in Customer Disputes

FINRA filed with the SEC its proposed rule change that would give customers the option of selecting all-public arbitrator panels in disputes with their brokerage firms or registered representatives.  The SEC has not yet published the rule change for public comment, but it is sure to generate much discussion and controversy.  FINRA previously announced that it was going to propose this rule change "to enhance confidence in and increase the perception of fairness in the FINRA arbitration process."  SIFMA said that it was waiting to see the proposed rule change before commenting on it.