SEC Approves FINRA Rule Change For Classifying Arbitrators

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 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.