FINRA Issues Notice Regarding SEC's Approval of Amendments to Arbitration Codes (FINRA Reg. Notice 15-18)

FINRA issued a regulatory notice regarding the SEC's recent approval of amendments to the definitions of "non-public arbitrator" and "public arbitrator" in the FINRA Customer and Industry Codes of Arbitration Procedure.

According to FINRA, the amended definitions provide that persons who worked in the financial industry for any duration during their careers will be classified always as non-public arbitrators, but that persons who represent investors or the financial industry as a significant part of their business will be classified as non-public and may become public arbitrators after a cooling-off period. The amendments also reorganize the definitions to make it easier for arbitrator applicants and parties to determine the correct arbitrator classification.

The amendments become effective on June 26, 2015.

See: FINRA Reg. Notice 15-18. Related news: SEC Approves FINRA Rule Change Regarding "Non-Public" and "Public" Arbitrator Definitions (Fed. Reg.) (March 4, 2015); FINRA Extends Time for SEC Action Regarding Definitions of "Non-Public" and "Public" Arbitrator (August 6, 2014); SIFMA Submits Comments on FINRA-Proposed Rule Regarding Definitions of "Non-Public" and "Public" Arbitrator (July 25, 2014); FINRA-Proposed Rule Change Relating to Revisions to Definitions of "Non-Public" and "Public" Arbitrator (Fed. Reg.) (July 3, 2014); FINRA Proposes Rule Change Relating to Revisions to Definitions of "Non-Public" and "Public" Arbitrator (June 18, 2014).