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FINRA Rule Proposal to Allow Investors to Choose Arbitration Panel with No Industry Participants

Written by Brent Burns, Esq.

Today FINRA announced that it will be filing a rule proposal next month that will allow investors filing arbitration claims the ability to select an all-public panel, “greatly increasing investor choice in the FINRA arbitration program.” If approved by the SEC, investors will still be allowed to choose a panel consisting of one industry and two public arbitrators, but they will also now have the option of choosing a panel consisting of three all-public arbitrators. The press release quotes Richard Ketchum, the FINRA Chairman and Chief Executive Officer, explaining that the new option for investors will “increase the perception of fairness in the FINRA process. . . All investors will have greater freedom in choosing arbitration panels, and any investor will have the power to have his or her case heard by a panel with no industry participants.”

A copy of the FINRA News release can be found here.

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This page contains a single entry from the blog posted on September 28, 2010 8:50 PM.

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