FINRA Issues Notice on SEC's Approval of Amendments Expanding Arbitrators' Authority to Make Referrals During Arbitration Proceeding (FINRA Reg. Notice 14-42)

FINRA issued a Regulatory Notice regarding the SEC's approval of amendments to FINRA Customer and Industry Arbitration Codes to permit arbitrators to make a referral during an arbitration proceeding concerning a situation that the arbitrator has reason to believe poses a serious threat that is likely to harm investors unless immediate action is taken.

The text of the amendments is set forth in Attachment A of the Regulatory Notice. The amendments are effective on October 27, 2014, for any arbitration case which has scheduled hearings remaining.

See: FINRA Regulatory Notice 14-42; FINRA Notice Announcement. Related news: SEC Order Approving FINRA-Proposed Rule to Broaden Arbitrators' Authority to Make Referrals during Arbitration Proceeding Published (Fed. Reg.) (October 15, 2014).