Regulatory Notice 11-05

Customer Option to Choose an All Public Arbitration Panel in All Cases

Effective Date: February 1, 2011

Executive Summary

Effective immediately, customers in FINRA arbitration have the option to choose an all public arbitration panel in all cases with three arbitrators. FINRA amended the Code of Arbitration Procedure for Customer Disputes to allow customers with claims over $100,000 to choose between two panel composition methods. The first method, called the composition rules for majority-public panel, is the composition method FINRA used prior to the rule amendments. It provides for a panel comprised of a chair-qualified public arbitrator, a public arbitrator and a non-public arbitrator.


The second method, called the composition rules for optional all public panel, allows any party to select an all public arbitration panel. FINRA believes that providing customers with the right to exclude a non-public arbitrator from the panel deciding their case will enhance customers’ perception of the fairness of FINRA’s rules and the securities arbitration process.


The text of the amendments is available as Attachment A on our website at www.finra.org/notices/11-05.


Questions concerning this Notice should be directed to:

  • Richard W. Berry, Senior Vice President and Director of Case Administration and Regional Office Services, Dispute Resolution, at (212) 858-4307 or via email; or
  • Margo A. Hassan, Assistant Chief Counsel, Dispute Resolution, at (212) 858-4481 or via email.