FINRA Announces Arbitration Task Force Created to Address Criticism

The Financial Industry Regulatory Authority (“FINRA“) recently announced the formation of a task force that will examine possible improvements to “the transparency, impartiality and efficiency of FINRA’s securities arbitration forum for all participants.”  The 13-member Arbitration Task Force includes six members of the financial industry and seven members of the general public.  The Task Force will reportedly consider possible improvements and enhancements to current FINRA arbitral procedures.  According to a FINRA press release,

“FINRA’s mission is to protect investors and support their confidence in the capital markets,” said Richard Ketchum, FINRA Chairman and Chief Executive Officer. “Arbitration plays an essential role in establishing a fair, timely and cost-effective process for resolving disputes between investors and brokers.  This task force brings together a diverse group of leading investor advocates, academics, regulators and industry representatives, and I am confident that their recommendations will help ensure FINRA’s arbitration process continues to serve the needs of the investing public.”

The Task Force was apparently created in response to recent criticism of FINRA proceedings by attorneys for investors as well as other individuals familiar with the process.  Following the Arbitration Task Force’s review, it will submit recommendations to FINRA’s National Arbitration and Mediation Committee.

Please stay tuned to Disputing for future updates regarding FINRA’s Arbitration Task Force.

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