We continue here our analysis of FINRA’s recently-published Report, FINRA Perspectives on Customer Recovery, and share news that a Bill has been introduced in the Senate to require FINRA to implement one of the Report’s proposals. We analyzed in SAA 2018-06 (Feb. 7) this new Report, which the Authority said “is intended to encourage a […]

With the statutory emphasis placed on specific procedures for SRO rulemaking — and with FINRA’s seemingly continuous flow of rule changes, amendments, and interpretations, one tends to forget that many, if not most, of the provisions in FINRA’s Arbitration Code, are default provisions — there if the parties need them. If the parties want to […]

The SEC’s Office of the Investor Advocate and the Commission’s Ombudsman have submitted a somewhat belated comment on FINRA’s proposed amendments to the expungement procedures, praising the Authority for making the effort, but suggesting more ways to improve the process. We reviewed in SAA 2018-07 the comments – due February 5th – from major institutional […]

The comment period closed December 18th on the FINRA Office of Dispute Resolution’s (“ODR”) Regulatory Notice on expungement. All commenters generally support the proposed changes, but all suggest improvements. As reported in SAAs 2017-48, -46, -41, -40 & -39, FINRA solicited public comments in Regulatory Notice 17-33 – Amendments to the Code of Arbitration Procedure […]

The comment period closed December 18th on the FINRA Office of Dispute Resolution’s (“ODR”) Regulatory Notice seeking comments on non-attorney representatives (“NAR”). With about 60 comments filed, a majority favor banning or restricting continued NAR use. As reported in SAAs 2017-48, -46, -41, -40, and -39, FINRA solicited public comments on Regulatory Notice 17-34 – […]

Directly after the first announcement, which came from FINRA-DR officials at the September 27 PLI Seminar, “Securities Arbitration 2017,” the Authority issued an update to its Expanded Expungement Guidance, that covered some previously untrodden ground. We circle back to that Guidance here. We summarized that material in SAA 2017-37. The supplementary guidance starts from a […]

Just as SAA 2017-39 went to press, we learned that FINRA on October 18th issued Regulatory Notice 17-33, Amendments to the Code of Arbitration Procedure for Customer Disputes to Expand the Options Available to Customers if a Firm or Associated Person is or Becomes Inactive. We offered a high-level review of the 11-page Reg Notice, […]

How much of the forum costs each party must pay is a matter for the discretion of the arbitrators. Our analysis of cost assessments in Customer-Member Awards reveals a decided tendency to favor customer claimants. A few words of explanation are in order: We track how arbitrators assess the fees FINRA charges for pre-hearing conferences […]

FINRA staff acted within authority granted by the Code of Arbitration Procedure when they declined to extend the date for returning arbitrator rankings. And, no offset would be applied to the award absent express direction from the panel. UBS Financial Services, Inc. v. Padussis, No. 15-2148 (4th Cir. Nov. 22, 2016), was a promissory note […]

In early September we reported on updates and additions to the “Arbitration and Mediation” part of the Authority’s Website, including rule filing status. We provide an update as we enter the fall. Motions to Dismiss The Web update email informed us that FINRA filed with the SEC in August a proposed rule change SR-FINRA-2016-030 to […]