FINRA Proposes Rule Change Relating to Revisions to Definitions of "Non-Public" and "Public" Arbitrator

FINRA filed a proposed rule change with the SEC to amend the Code of Arbitration Procedure for Customer Disputes and the Code of Arbitration Procedure for Industry Disputes. The rule change proposes to amend the definitions of "non-public" arbitrator and "public" arbitrator.

The amendments would, among other things, provide that persons who worked in the financial industry for any length of time during their careers would always be classified as non-public arbitrators, and persons who represented investors or the financial industry as a significant part of their business also would be classified as non-public, but could become public arbitrators after a cooling-off period.

See: Text of Proposed Rule Change.