FINRA Proposes Revisions to Arbitration and Mediation Codes

FINRA proposed amendments to arbitration and mediation rules concerning representation before FINRA's Dispute Resolution Services ("DRS") forum.

The proposed amendments would (i) prohibit compensated non-attorneys from representing parties in the DRS forum; (ii) codify current practice that a student enrolled in a law school and practicing under the supervision of an attorney may represent investors in the DRS forum; and (iii) clarify additional circumstances in which any person, including attorneys, would be prohibited from representing a party in the DRS forum. The proposed amendments would also clarify that "a challenge to the qualifications of a representative made outside of the proceeding would not stay or otherwise delay the proceeding without a court order."

The amendments would revise FINRA Rule 12208(b) through (d)("Representation of Parties") under the Code of Arbitration Procedure for Customer Disputes, FINRA Rule 13208(b) through (d) ("Representation of Parties") under the Code of Arbitration Procedure for Industry Disputes and FINRA Rule 14106(b) through (d) ("Representation of Parties") under the Code of Mediation Procedure ("Mediation Code").

The date for comment submissions has not yet been set.