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Florida Business, Whistleblower, & Securities Lawyers / Blog / FINRA / Simplified Arbitration Rules Amended

Simplified Arbitration Rules Amended

The Financial Industry Regulatory Authority (“FINRA”) issued Regulatory Notice 12-30 announcing that the Securities and Exchange Commission (“SEC”) has approved identical amendments to Rules 12401 and 12800 of the FINRA Code of Arbitration Procedure for Customer Disputes, and Rules 13401 and 13800 of the FINRA Code of Arbitration Procedure for Industry Disputes (collectively “Simplified Arbitration Rules”).

Currently, FINRA customer cases involving damages of $25,000 or less are decided by one arbitrator. Unless the customer requests a hearing, the sole arbitrator decides the case on the papers submitted.

Similarly, in intra-industry disputes between FINRA members and brokers, claims alleging damages of up to $25,000 are decided by one arbitrator solely on the written submissions. In an industry dispute, only the claimant may request a hearing.

The amendments to the Simplified Arbitration Rules raise the dollar amount for cases that will be decided by a single arbitrator from $25,000 to $50,000. The amended Simplified Arbitration Rules take effect on July 23, 2012 for all customer and industry cases filed on or after that date.

The Florida securities lawyers at Rabin Kammerer Johnson represent investors nationwide in FINRA arbitration matters. Investors nationwide who have incurred recoverable investment losses due to specific failures by stockbrokers and brokerage firms, and who may have a FINRA arbitration claim, may contact the Florida securities lawyers at Rabin Kammerer Johnson for a free and confidential consultation by calling toll free at 877.915.4040.

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