Regulatory Notice 07-57

SEC Approves a Proposed Rule Change Relating to Representation of Parties in Arbitration and Mediation; Effective Date: December 24, 2007

Executive Summary

The SEC has approved amendments to Rule 12208 of the Code of Arbitration Procedure for Customer Disputes (Customer Code) and Rule 13208 of the Code of Arbitration Procedure for Industry Disputes (Industry Code), and has approved new Rule 14106 of the Code of Mediation Procedure to address representation of parties in arbitration and mediation cases.1

The amendments apply to any case in which parties provide FINRA with notice of representation on or after December 24, 2007. If an attorney or representative files a pleading, or otherwise acts on behalf of a party in a case in the FINRA dispute resolution forum, then FINRA will consider these actions as sufficient notice of representation. If parties have provided such notice of representation to FINRA prior to the effective date, then the new rules do not apply. If they have not given such notice prior to the effective date, then the new rules do apply. The text of the amendment is set forth in Attachment A.

Questions concerning this Notice should be directed to Mignon McLemore, Assistant Chief Counsel, FINRA Dispute Resolution, at (202) 728-8151.

1 Exchange Act Release No. 56540 (Sept. 26, 2007), 72 Federal Register 56410 (Oct. 3, 2007) (File No. SR-NASD-2006-109).