FINRA Board Meets This Week; Two Arbitration Rulemaking Items on the Agenda
Posted on Categories Arbitration, Broker-Dealer, FINRA Code of Arbitration, Regulation, Representation Issues, Securities ArbitrationTags , , ,

FINRA’s Board of Governors was scheduled to meet December 12-13 and consider two arbitration-related proposals according to the posted meeting Agenda.

Specifically: “The Regulatory Policy Committee will review several current rulemaking proposals, including: a proposal to prohibit compensated non-attorney representatives in arbitrations and mediations; and proposed changes to the Code of Arbitration Procedure codifying existing arbitrator expungement guidance.”

Recall that, in keeping with the “new normal,” the Board previously authorized staff to publish Regulatory Notices seeking public comments on two proposals: 1) Regulatory Notice 17-34, FINRA Requests Comment on the Efficacy of Allowing Compensated Non-Attorneys to Represent Parties in Arbitration (Oct. 18); and 2) Regulatory Notice 17-42, FINRA Requests Comment on Proposed Amendments to the Codes of Arbitration Procedure Relating to Requests to Expunge Customer Dispute Information (Dec. 6). The comment periods ended months ago, and our take is that staff have completed their review and are presenting final rulemaking proposals to the Board.

(ed: Although no further information is contained in the meeting notice, it’s clear to us from the Agenda item title that staff is proposing a ban on compensated non-attorney reps. That may not be as fair, but it’s certainly simpler for FINRA than regulating NAR participation.) (SAC Ref. No. 2018-47-04)

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