December 16, 2017

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December 14, 2017

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Proposed Rule Change Relating To Revisions To the Definition of Non-public Arbitrator

On July 11, the Financial Industry Regulatory Authority filed a proposed rule amendment to change the definition of a non-public arbitrator under the Code of Arbitration Procedure for Customer Disputes and the Code of Arbitration Procedure for Industry Disputes (collectively, the Codes), to a person who is otherwise qualified to serve as an arbitrator, and is disqualified from service as a public arbitrator under the Codes.

FINRA classifies arbitrators as either non-public or public. Generally, non-public arbitrators are those who have or had some affiliation with the financial industry. Based upon 2015 rule amendments, certain otherwise qualified arbitrator applicants did not meet the criteria for either public or non-public status, resulting in FINRA rejecting such applicants. The new rule amendment is designed to allow FINRA to appoint individuals to the roster of non-public arbitrators if they meet FINRA’s general arbitrator qualification criteria, but cannot be qualified as public arbitrators.

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About this Author

Associate

Dina Wegh concentrates her practice in financial services matters.

While in law school, Dina served as a managing director for A Jailhouse Lawyer's Manual and was on the staff of the Human Rights Law Review.

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Special Counsel

Michael Foley represents broker-dealers, investment advisers and other financial services industry participants with respect to a broad spectrum of legal and regulatory matters arising under the federal securities laws.

Michael has nearly 20 years of experience in private practice and in-house at both a large, full-service broker-dealer and at an online discount broker-dealer, advising broker-dealers and other financial institutions regarding compliance with the federal securities and commodities laws, and with the regulations of the US Securities and Exchange Commission, the US Commodity Futures Trading Commission and financial industry self-regulatory organizations. 

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