Criteria for Temporary Disqualification
Temporary Disqualification will result in a temporary decline of new applicants and a status of "inactive" for currently enrolled arbitrators.
- Pending Actions
Arbitrator is the subject of, or is a party to, a pending investment-related civil action or arbitration claim initiated by a customer; or, civil action or administrative complaint initiated by a regulatory body; or, a civil action or regulatory complaint alleging discrimination or sexual harassment. This provision excludes cases where the arbitrator's conduct in his or her role as an arbitrator is at issue.
- Subject of Claims or Complaints
Arbitrator is the subject of, or is a party to, three (3) or more claims or complaints (reportable on Form U-4) within the last ten (10) years regardless of outcome.
- Filed a Statement of Claim or Complaint
Arbitrator is a party (excluding representatives and unnamed parties to class actions) that has filed two or more investment-related civil actions or arbitration claims within the last ten (10) years.
- Final Decisions, Awards
Arbitrator is the subject of, or is a party to, a final, adverse investment-related court decision or arbitration award of $25,000 or more within the past seven (7) years resulting from a customer-initiated complaint or claim.
- Final Regulatory Action
Arbitrator is the subject of, or is a party to, any final adverse decision issued by any regulatory authority within the past seven (7) years, where the adverse decision does not involve a technical violation or does not give rise to a statutory disqualification.
- Director of Arbitration's Judgment
The Director of Arbitration may temporarily remove an arbitrator, if, in his or her sole judgment, it is determined that the arbitrator is not otherwise properly included in the list of eligible neutrals.
Criteria for Permanent Disqualification
Permanent Disqualification means the application of any new applicant will be rejected, and enrolled neutrals will be removed from the roster without possibility of reconsideration.
If an arbitrator answers in the affirmative to any questions contained in the Legal and Regulatory Disclosure sections of the Arbitrator Application Form, the arbitrator's explanation for the affirmative answer will be closely reviewed by the Director. If the affirmative answer does not constitute a statutory disqualification, the explanation for the answer will be disclosed to the parties—unless the information is non-regulatory or does not reflect negatively on the individual's character, and is not significant to an individual's performance as a neutral.
Misstatement or failure to disclose material information.
- Disciplinary Actions
Final, adverse disciplinary action by any domestic or foreign regulatory or governing professional body on a finding of, including but not limited to, false statement or omissions, material violation of investment-related regulation, or the violation of a non-technical rule of such organizations or statute.
Misdemeanor involving investments or investment-related activities.
Felony conviction, or plea of guilty or nolo contendere (no contest), to a felony charge.
Final adverse court decisions where there has been a finding of fraud.
- Statutory Disqualifications
Statutory disqualifications not included above.
- Decisions, Awards, Involving Discrimination/Sexual Harassment
Arbitrator is the subject of, or is a party to, a final, adverse regulatory decision or arbitration award involving any discrimination claims, including sexual harassment, in which the arbitrator was found to have engaged directly in sexual harassment or discrimination.
- Director of Arbitration's Judgment
The Director of Arbitration, upon approval from the National Arbitration & Mediation Committee, may remove an arbitrator if in his or her judgment the arbitrator is not otherwise properly included in the list of eligible neutrals.