Regulatory Notice 09-48

SEC Approves Rule Establishing Expedited Procedures for Arbitrating Promissory Note Cases

Effective Date: September 14, 2009

Effective September 14, 2009, FINRA will begin expediting the administration of cases that solely involve a brokerage firm's claim that an associated person failed to pay money owed on a promissory note. Under the new procedures, a single public arbitrator from the roster of arbitrators approved to hear statutory discrimination claims will decide such promissory note cases. FINRA amended Rules 13214 and 13600 of the Code of Arbitration Procedure for Industry Disputes to make conforming changes.

The SEC approved new FINRA Rule 13806 and amendments to FINRA Rules 13214 and 13600 relating to promissory note proceedings. The text of the rules is set forth in Attachment A, and will apply to all promissory note cases filed on or after the effective date.

Questions concerning this Notice should be directed to:

  • Richard W. Berry, Vice President and Director of Case Administration, FINRA Dispute Resolution, at (212) 858-4307 or by email or
  • Margo A. Hassan, Counsel, FINRA Dispute Resolution, at (212) 858-4481 or by email.