News Release

FINRA Statement on PIABA's Arbitrator Report

For Release: 
Tuesday, October 7, 2014
Contact(s): 

Michelle Ong (202) 728-8464
Nancy Condon (202) 728-8379

 

FINRA's Dispute Resolution forum is a fair, efficient and cost-effective system to resolve disputes between and among investors, brokerage firms and individual brokers.

We have an aggressive recruitment campaign in place to seek individuals from diverse backgrounds to serve as arbitrators. Ongoing recruiting initiatives involve more than 100 organizations nationwide reaching out to all types of people through on-site events, targeted recruiting advertisements and direct marketing campaigns. (See Appendix)

FINRA has been working closely with PIABA since 1999 in an effort to recruit the best arbitrators possible. The suggestion that FINRA has not been partnering with PIABA in recruitment of potential arbitrators is absurd. We have been supplying PIABA with arbitrator application forms for more than 15 years and have had a link from PIABA's website to the arbitrator application pages for more than 10 years. We have openly discussed our arbitrator recruitment marketing and advertising campaign at conferences, and as recently as 2012 shared our recruitment strategy with PIABA leadership. At their invitation, FINRA attends their Annual Meetings, in part, to recruit arbitrators.

The reality is that win rates increase or decrease depending upon the controversy involved, market events and counsel. We have made substantial efforts to recruit and train arbitrators from diverse backgrounds and will continue to do so.

We think having educational and experience requirements for arbitrators is necessary; a primary goal of our arbitrator recruitment program is to identify and train a knowledgeable pool of potential arbitrators from which parties can choose (during the list selection process) to respond to what are often very complex issues. The notion that individuals 70 and older are unable to and unfit to serve as effective arbitrators is insulting and borders on age discrimination. It stands to reason that a good portion of those able to make this time commitment on an ongoing basis for the pay offered are likely to be retirees.

In July, FINRA formed an Arbitrator Task Force made up of a diverse group of individuals, and on which PIABA has strong representation, to consider possible enhancements to the forum.

We continue to welcome all input that is substantive and contributes to further enhancing the forum.

# # #

Appendix

FINRA's ongoing recruiting initiatives involve more than 100 organizations nationwide reaching out to all types of people through on-site events, targeted recruiting advertisements and direct marketing campaigns that have taken place at the following:

  • AAII (American Association of Individual Investors)
  • AARP
  • AAUW (American Association of University Women)
  • ABWA (American Business Women Association)
  • AEA (American Economic Association - University professors of Economics)
  • AICPA (American Institute of CPAs)
  • Alaska State Bar
  • ALPFA (Association of Latino Professionals in Accounting)
  • American Association for Justice (AAJ)
  • American Bar Association - ABA-ADR Section
  • American Bar Association - Women in ADR
  • American City Business Journal (Florida)
  • Arizona State Law School Lodestar DR Program
  • Asian-American Bar of Kansas City
  • Asian MBA
  • Association of State and Territorial Health Organization
  • ASWA (American Society of Women Accountants)
  • Better Business Bureau
  • California Women's Lawyers
  • California Western School of Law - Professors/Administration
  • Capital Law University Law School
  • Center for Alternative Dispute Resolution
  • Colegio de Abogadors (Puerto Rico)
  • Colegio de CPA (Puerto Rico)
  • Colegio Medicon (Puerto Rico)
  • Columbia Law School ADR Program - Professors/Administration
  • Corp! Magazine (Detroit, MI)
  • Corporate Counsel Women of Color
  • Cuban American Bar
  • Diversity in the Bar publication
  • Financial Services Professionals (Hartford, CT)
  • FINRA Annual Securities Conference
  • FL Association of Women Lawyers
  • FL Dispute Resolution Center
  • Florida State Bar
  • FL Trend Magazine (Business journal subscribers)
  • Fordham School of Law Conflict Resolution and ADR Program
  • GABWA (Georgia Association for Black Women Lawyers)
  • Georgia State Bar
  • Iowa Association of Business
  • Inter-Pacific Bar Association
  • Intramerican University of Puerto Rico
  • Kiplinger Retirement Report Publication
  • Kiwanis Club of Los Angeles
  • LinkedIn Recruiter
  • Louisiana State Bar
  • Macomb County Bar (Michigan)
  • Maine State Bar
  • Massachusetts Society of CPAs
  • MDR (Market Data Retrieval) College & University Professors
  • Michigan State Bar
  • MOAA (Military Officers Association of America)
  • Montana State Bar
  • NABA (National Association of Black Accountants)
  • NALA (National Association of Legal Assistants)
  • NAPABA (National Association of Asian-Pacific Bar Association)
  • National Academy of Arbitrators
  • National Association of Female Executives (subscribers)
  • National Association of Women MBAs
  • National Realtors Association
  • National Society for Hispanic Professionals
  • NBA (National Bar Association)
  • NBMBAA (National Black MBA Association)
  • Nebraska State Bar
  • New Jersey State Bar
  • New Mexico Lawyer
  • New Orleans State Bar
  • New York County Lawyers Association
  • NOW (National Organization of Women)
  • NSHMBA (National Hispanic MBA Association)
  • NUL (National Urban League)
  • Ohio State Bar
  • Ohio State University Law School - Professors/Administration
  • Onandaga County Bar (Syracuse, NY)
  • Online advertising:
    • Afro.com
    • Black Engineer
    • Black Enterprise
    • DiversityInc
    • DC Military.com
    • EmpleosAmigos.com
    • HBCLUConnect.com
    • Hispanic Engineer
    • La Vibra Magazine
    • Military1.com
    • National Hellenic Society
    • Publimetro
    • RecruitDisability.org
    • Retired Brains
    • Vista Magazine
    • Women of Color
  • Orange County Bar Association
  • Oregon State Bar
  • Palm Beach County Bar (FL)
  • Pennsylvania Society of CPAs
  • Philadelphia Bar Reporter Online Newsletter
  • PIABA
  • Realtor Magazine (Subscribers list)
  • Rhode Island Bar Association
  • Robson Publishing (Sun Lakes newspaper, FL)
  • Rotary Club of Los Angeles
  • SIFMA
  • SIPMA, Inc (Puerto Rico)
  • Society of Financial Professionals
  • Southern California Mediation Association
  • Texas State Bar
  • The Transition Network (Community of professional women)
  • The Villages Daily Sun News (The Villages, FL)
  • UC -Hastings College of Law - Professors/Administration
  • UCLA Law School - Professors/Administration
  • University of Colorado - Law/Business Professors/Administration
  • University of Puerto Rico Law School
  • University of TX Law School - Professors/Administration
  • University of Washington Law School - Professors/Administration
  • Vermont Bar Journal
  • Wall Street Journal
  • Washington State Bar
  • Washoe County Bar (Nevada)
  • Women's Bond Club (New York)
  • Womens Council Realtors
  • Womens Lawyers Association
  • Working Mother Magazine