Federal Register: SEC Approves FINRA Proposal to Amend Procedures Relating to Motions to Dismiss in Arbitration

The SEC approved a FINRA proposal to amend FINRA Rule 12504 of the Code of Arbitration Procedure for Customer Disputes and FINRA Rule 13504 of the Code of Arbitration Procedure for Industry Disputes. The final amendments were published in the Federal Register.

The amendments allow arbitrators to act upon a motion to dismiss a party or claim prior to the conclusion of a party's case in chief, if the arbitrators determine that: (i) the non-moving party previously brought a claim regarding the same dispute against the same party, and (ii) the dispute was fully and finally adjudicated on the merits and memorialized in an order, judgment, award or decision.