FINRA Proposes Updates to Arbitrator Selection Process

FINRA proposed updates to the arbitrator list selection process in the Code of Arbitration Procedure for Customer Disputes ("Customer Code") and the Code of Arbitration Procedure for Industry Disputes ("Industry Code").

Per the recommendations of a report conducted by an outside counsel, the proposal would clarify the expectations and requirements relating to identifying potential conflicts of interest during the selection process and removing an arbitrator prior to commencing a hearing. The proposal would also make technical changes to (i) the requirements for holding prehearing conferences and hearing sessions, (ii) initiating and responding to claims, (iii) motion practice, (iv) claim and case dismissals and (v) providing a hearing record.

Comments on the proposal are due by February 2, 2023.