(a) Composition of Panels
The arbitrator will be a public arbitrator selected from the public chairperson roster, unless the parties agree in writing otherwise.
(b) Generating Lists
(1) The list selection algorithm will generate a list of 10 public arbitrators from the FINRA chairperson roster.
(2) The list selection algorithm will exclude arbitrators from the list based upon current conflicts of interest identified within the list selection algorithm.
(3) The Director will exclude arbitrators from the list based upon a review of current conflicts of interest not identified within the list selection algorithm. If an arbitrator is removed due to such conflicts, the list selection algorithm will randomly select an arbitrator to complete the list.
(c) Sending Lists to Parties
(1) The Director will send the list generated by the list selection algorithm to all parties at the same time, within approximately 20 days after the last answer is due, regardless of the parties' agreement to extend any answer due date. The parties will also receive, for each arbitrator listed, a disclosure report containing employment history and other background information.
(2) Requests for Additional Information About Arbitrators
(A) A party may request additional information about an arbitrator, at any stage of the proceeding by filing with the Director and serving all other parties with a written request, which may omit any information that would reveal the identity of the party making the request.
(B) Within ten days of receipt of the request, an opposing party may object to a request for additional information by filing objections with the Director and serving the objections on all other parties. After five days have elapsed from the service of any objections and provided that the request for additional information has not been withdrawn, the Director will forward the request together with any objections to the arbitrator who is the subject of the request.
(C) If no opposing party objects to the request for additional information, the Director and the parties shall not disclose the identity of the requesting party to the arbitrator.
(D) The Director will send any response from the arbitrator to all of the parties at the same time.
(E) When a party requests additional information, the Director may, but is not required to, toll the time for parties to return the ranked lists under Rule 12402(d)(3).
(d) Striking and Ranking Arbitrators
(1) Each separately represented party may strike up to four of the arbitrators from the list for any reason. At least six names must remain on the list.
(2) Each separately represented party shall rank all remaining arbitrators on the list in order of preference, with a "1" indicating the party's first choice, a "2" indicating the party's second choice, and so on.
(3) The ranked list must be completed via the Party Portal or, if the party is a
pro se customer who opted out of using the Party Portal pursuant to
Rule 12300(a), returned to the Director by first-class mail, overnight mail service, overnight delivery service, hand delivery, email or facsimile no more than 20 days after the date upon which the Director sent the lists to the parties. If the Director does not receive a party's ranked list within that time, the Director will proceed as though the party did not want to strike any arbitrator or have any preferences among the listed arbitrators. Absent extraordinary circumstances, the Director will not grant a party’s request for an extension to complete the ranked list that is filed after the deadline has elapsed.
(4) Parties are not required to send a copy of their ranking list to the opposing parties.
(e) Combining Lists
The Director will prepare a combined ranked list of arbitrators based on the parties' numerical rankings, as follows:
(1) The Director will add the rankings of all claimants together, and the rankings of all respondents together, to produce a separate combined ranked list for the claimants and the respondents.
(2) The Director will then add the combined rankings of claimants and the respondents together, to produce a single combined ranking number for each arbitrator, excluding all arbitrators stricken by a party.
(f) Appointment of Arbitrators; Discretion to Appoint Arbitrators Not on List
(1) The Director will appoint the highest-ranked available arbitrator from the combined chairperson list.
(2) If the number of arbitrators available to serve from the combined list is not sufficient to fill an initial panel, the Director will appoint a chair-qualified arbitrator to complete the panel from names generated randomly by the list selection algorithm.
(3) The Director will provide the parties information about the arbitrator as provided in Rule 12402(c) and the parties will have the right to challenge the arbitrator as provided in
Rule 12407.
(4) Appointment of the arbitrator occurs when the Director sends notice to the parties of the name of the arbitrator. Before making any decision as an arbitrator or attending a hearing session, the arbitrator must execute FINRA's arbitrator oath or affirmation.
(g) Replacement of Arbitrators
(1) If an arbitrator is removed, or becomes otherwise unable or unwilling to serve, the Director will appoint a replacement arbitrator in accordance with this rule.
(2) The Director will appoint as a replacement arbitrator the arbitrator who is the most highly ranked available arbitrator remaining on the combined list.
(3) If there are no available arbitrators on the combined list, the Director will appoint an arbitrator from the chairperson roster to complete the panel from names generated by the list selection algorithm. The Director will provide the parties information about the arbitrator as provided in Rule 12402(c) and the parties shall have the right to object to the arbitrator as provided in
Rule 12407.
