Regulatory Notice 17-02

SEC Approves Amendments to the Codes of Arbitration Procedure Regarding Motions to Dismiss

Effective Date: January 23, 2017

Summary

The Securities and Exchange Commission (SEC) approved amendments to FINRA Rules 12504 and 13504 (Motions to Dismiss) of the Customer and Industry Codes of Arbitration Procedure (Codes) to add an additional ground for arbitrators to act on motions to dismiss prior to the conclusion of the claimant’s case in chief. The new ground provides that arbitrators may act upon a motion to dismiss a party or claim prior to the conclusion of a party’s case in chief if the arbitrators determine that the non-moving party previously brought a claim regarding the same dispute against the same party, and the dispute was fully and finally adjudicated on the merits and memorialized in an order, judgment, award or decision.

The amendments are effective for motions to dismiss filed on or after January 23, 2017.

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

Questions concerning this Notice should be directed to:

  • David Carey, Associate Director, FINRA Office of Dispute Resolution, at (212) 858-4333; or
  • Margo Hassan, Associate Chief Counsel, FINRA Office of Dispute Resolution, at (212) 858-4481.