Wednesday, January 12, 2011
FINRA Files Amendment to Proposed Rule Change Giving Customers Option of All-Public Arbitration Panel
FINRA recently filed with the SEC an amendment to its proposed rule change to allow customers the option of selecting an arbitration panel consisting entirely of public arbitrators. Comments filed in response to date have been overwhelmingly in support of the proposal.
The modifications principally address concerns raised by some commenters that customers could inadvertently lose the important right of selecting an all-public panel if they failed to select that option within 35 days. FINRA rejected suggestions to make the all-public panel the default option. Instead, it proposes that it will notify customers in writing of the option and the 35-day deadline as well as publicizing it on its website and in other informational materials. It will also permit customers to make the election when filing its Statement of Claim.