{"id":831,"date":"2011-02-12T18:11:08","date_gmt":"2011-02-12T18:11:08","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2011\/02\/sec_approves_finras_proposal_t"},"modified":"2022-03-09T16:04:49","modified_gmt":"2022-03-09T22:04:49","slug":"sec-approves-finras-proposal-t","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-approves-finras-proposal-t\/","title":{"rendered":"SEC Approves FINRA\u2019s Proposal to Give Investors an All-Public Arbitration Panel Option"},"content":{"rendered":"

\t\t\t\tThe Securities and Exchange Commission has approved the Financial Industry Regulatory Authority’s proposal to give investors the choice of having their securities claims<\/a> against broker-dealers heard by an arbitration panel that doesn’t include any industry members. FINRA says that its Rule 12403, which lets investors choose between a majority-public panel and all-public panel, will go into effect right away. Arbitration cases that began prior to the SEC’s decision to approve the proposal will be notified of this new rule. <\/p>\n

Prior to submitting its proposal to the SEC, FINRA tested the idea as a pilot program for more than two years. FINRA says that while investors regularly chose to have nonpublic arbitrators hear their securities case, it became clear that giving them other options improved their perception that the arbitration process was a fair one. <\/p>\n

State securities regulators are praising the SEC’s decision. However, they are calling for even more reform. <\/p>\n

Optional All Public Panel Rule 12403(d):<\/em>
\nFINRA will send the parties three lists. One list will contain the name of 10 non-public arbitrators. The other list will name 10 chair-qualified public arbitrators. The other list will name 10 public arbitrators. Each party will be able to strike up to four arbitrators from the public and chair-qualified lists. Parties can strike the names of all 10 arbitrators from the non-public arbitrator list.<\/p>\n

Majority Public Panel Rule 12403(c):<\/em>
\nThis panel will include one non-public arbitrator, one public arbitrator, and one chair-qualified public arbitrator. The same three lists as the ones mentioned for the All Public Panel will be sent to the parties. Up to four arbitrators from each list can be struck. <\/p>\n


\nRelated Web Resources: <\/strong>
\nNotice to Parties \u2013 New Optional All Public Panel Rules, FINRA <\/p>\n

SEC Approves FINRA Proposal to Give Investors Permanent Option of All Public Arbitration Panels, FINRA, February 1, 2011 <\/p>\n

Related Blog Posts:<\/strong>
\nFINRA Wants to Make All-Public Arbitration Panel for Investors Permanent<\/a>, Stockbroker Fraud Blog, October 7, 2010
\nNumber of FINRA Arbitration Claims Rose in 2009 Following Market Crisis<\/a>, Stockbroker Fraud Blog, January 13, 2010
\nFINRA Says Number of Stockbroker Fraud Arbitration Claims by Plaintiffs is Rising<\/a>, Stockbroker Fraud Blog, July 14, 2009 Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Securities and Exchange Commission has approved the Financial Industry Regulatory Authority’s proposal to give investors the choice of having their securities claims against broker-dealers heard by an arbitration panel that doesn’t include any industry members. FINRA says that its Rule 12403, which lets investors choose between a majority-public panel and all-public panel, will go […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3798,3739],"tags":[],"class_list":["post-831","post","type-post","status-publish","format-standard","hentry","category-arbitration","category-finra"],"yoast_head":"\nSEC Approves FINRA\u2019s Proposal to Give Investors an All-Public Arbitration Panel Option — Investor Lawyers Blog — February 12, 2011<\/title>\n<meta name=\"description\" content=\"The Securities and Exchange Commission has approved the Financial Industry Regulatory Authority's proposal to give investors the choice of having their — February 12, 2011\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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