As we explained in our posts dated October 8 and 28, 2010, FINRA proposed a rule last year that would allow for the selection of all-public arbitraiton panels in disputes involving investors and brokers. The SEC provided its approval of the rule on January 31, 2011. This means that the new panel-selection rule will apply apply to all customer cases requiring a three-arbitrator panel in which arbitrator lists have not been sent as of January 31, 2011.
The FINRA notice to parties which explains the rule can be found here. It provides, in part:
Customers choose the panel selection method; neither the firms nor associated persons can choose the selection method. The rule change expands to all customer cases (whether the customer is a claimant or a respondent) the FINRA Public Arbitrator Pilot Program (Pilot Program) that gave investors filing an arbitration claim against certain firms the option of choosing an all-public panel.
Please see full article below for more information.
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