FINRA Approves Permanent Customer Option to Choose All-Public Arbitration Panel in All Cases
Co-authored by Natalya S. Zelensky
Effective February 1, customers in Financial Industry Regulatory Authority arbitration may choose an all-public arbitration panel in disputes in which the customer is claiming over $100,000. For such claims, customers may still choose a majority-public panel, which provides for a panel of one chair-qualified public arbitrator, one public arbitrator and one non-public arbitrator. The amendments apply only to customer disputes; they do not apply to disputes involving only industry parties. According to the Regulatory Notice, FINRA believes giving customers the option of an all-public panel will enhance confidence in and increase the perception of fairness in the FINRA arbitration process.
Click here to read FINRA Regulatory Notice 11-05.
