FINRA Dispute Resolution Task Force Issues Final Recommendations

The FINRA Dispute Resolution Task Force made its final recommendations for improving the FINRA arbitration forum. Members of the task force include counsel who represent investors and counsel who represent securities firms, as well as arbitrators, a mediator, a state regulator, an academic and a consumer advocate.

The task force's 51 recommendations included the following:

• an increase in arbitrator honoraria from $300 to $500 per session (or $600 to $1,000 a day);
• increasing the number of disputes in which an explained decision would be required;
• the creation of a pool of trained and experienced arbitrators to conduct expungement hearings in settled cases, as well as cases brought solely for the purpose of seeking expungement; and
• an automatic mediation process for cases filed in arbitration, subject to an opt-out provision.

The National Arbitration and Mediation Committee, which is FINRA's Standing Board Advisory Committee, will be next to review the task force's recommendations.