FINRA Proposes All-Public Arbitration Panel Option

Law360, New York (September 28, 2010, 2:33 PM EDT) -- The Financial Industry Regulatory Authority has prepared a new rule that would allow investors bringing arbitration claims against a company to opt for an all-public arbitration panel, expanding investor choice in dispute proceedings.

FINRA announced Tuesday that it would seek clearance in October from the U.S. Securities and Exchange Commission to enact the new rule, the product of a roughly two-year pilot program.

If the SEC approves the rule, investors will have the option of exclusively selecting public arbitrators — those with no direct affiliation with...
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