Regulatory Notice 08-22

SEC Approves Rule Change to Amend the Definition of Public Arbitrator in the Arbitration Codes for Customer and Industry Disputes; Effective June 9, 2008

Executive Summary

Effective June 9, 2008, FINRA will add an annual revenue limitation to the definition of public arbitrator, set forth in the Code of Arbitration Procedure for Customer Disputes and the Code of Arbitration Procedure for Industry Disputes. The amendment, which was approved by the Securities and Exchange Commission, will ensure that individuals with ties to the securities industry may not serve as public arbitrators in FINRA arbitrations.1

The text of the amendment is set forth in Attachment A. The amendment will apply to arbitrator lists sent out according to Rules 12403 or 13403 on or after June 9, 2008, and to arbitrators appointed by the Director of Arbitration according to Rules 12406(c), 12411(c), 13406(c) or 13411(c) on or after June 9, 2008, when an insufficient number of names remain on the consolidated list.

Questions concerning this Notice should be directed to Barbara L. Brady, Vice President and Director of Neutral Management, at (212) 858-4352 or by email; or Mignon McLemore, Assistant Chief Counsel, FINRA Dispute Resolution, at (202) 728-8151 by email.  

 

1 Exchange Act Release No. 57492 (March 13, 2008), 73 Federal Register 15025 (March 20, 2008) (File No. SR-NASD-2007-021).