Yesterday the Securities and Exchange Commission (SEC) approved a Financial Industry Regulatory Authority (FINRA) rule revising the definition of public and non-public arbitrator. Generally, arbitrators who had worked in the securities industry were classified as non-public arbitrators and individuals who had not were classified as public. However, as any securities arbitration practitioner knows, there was a fair amount of subjectivity in the classifications including past industry employees classified as public if they had been out of the industry for a undefined period of time. This rule change brings additional transparency and clarity to the arbitration process and will make arbitrator selection fairer. Overall, this is a very positive change for the investing public. The entire rule may be found here.
The experience securities fraud attorneys at Colling Gilbert Wright & Carter have filed and successfully litigated hundreds of FINRA arbitration claims. If you have lost money due to negligence or fraud by your broker, please contact our offices today for a free case evaluation.