SEC Approves FINRA Rule For Arbitration Decisions

Law360, New York (February 11, 2009, 12:00 AM EST) -- The U.S. Securities and Exchange Commission has approved a rule proposed by the Financial Industry Regulatory Authority Inc. that seeks to address concerns about investors' ability to understand the rationale behind arbitration awards.

Approved Feb. 4, the rule will require arbitrators to provide a written explanation of an award, or “explained decision,” if both parties in the case request one.

Currently, decisions tend to be succinct written explanations of the amounts being claimed and awarded in arbitration. The proposed rule specifies that a fact-based explanation will...
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