September 22, 2022

FINRA Proposes Updating Code References to Align with New Arbitrator List Selection Process

FINRA proposed amendments to update references to the new arbitrator list selection process in the Codes of Arbitration Procedure ("Codes").

The proposal would remove references to the "Neutral List Selection System" and replace them with references to the "list selection algorithm." FINRA said that the proposal will "provide greater transparency and consistency regarding arbitrator list selection, as the Codes would reflect and align with Dispute Resolution Service's ("DRS") existing practices, processes and systems relating to arbitrator list selection."

FINRA said the amendments are non-substantive and do not include any changes to the list selection algorithm or any of the DRS's existing practices related to arbitrator list selection.

FINRA asked the SEC to waive the 30-day waiting period so that FINRA can implement the proposal immediately. Comments on the proposal will be accepted until 21 days after its publication in the Federal Register.

Premium Content

Available only to Premium subscribers.