FINRA Proposes Amendments to Arbitration Procedure Codes for Customer and Industry Disputes

FINRA proposed amendments to Rule 12904(j) of the Code of Arbitration Procedure for Customer Disputes, and Rule 13904(j) of the Code of Arbitration Procedure for Industry Disputes. The amendments provide that, absent any specification to the contrary in an award, when arbitrators order opposing parties to pay damages to one another, the monetary awards shall offset, and the party that owes the larger amount shall pay the net difference.