Regulatory Notice 13-21

SEC Approves Amendments to Arbitration Codes to Revise the Definition of Public Arbitrator


Effective Date: July 1, 2013

Executive Summary

The SEC approved amendments to the definition of public arbitrator in the Customer and Industry Codes of Arbitration Procedure. The amended definition excludes persons associated with a mutual fund or hedge fund from serving as public arbitrators and requires individuals to wait for two years after ending certain affiliations before FINRA may permit them to serve as public arbitrators.

 

The amendments are effective on July 1, 2013, and apply to all cases in which FINRA has not sent to the parties lists of chair-qualified public arbitrators and public arbitrators for arbitrator selection.

 

The text of the amendments is set forth in Attachment A.

 

Questions concerning this Notice should be directed to:

 

  • Barbara Brady, Vice President and Director, Neutral Management, Dispute Resolution, at (212) 858-4352 or by email or
  • Margo A. Hassan, Assistant Chief Counsel, Dispute Resolution, at (212) 858-4481 or by email.