FINRA notified member firms that the SEC approved a FINRA proposal to amend the FINRA Codes of Arbitration of Procedures for Customer and Industry Disputes arbitration award offsets. These amendments provide that, absent any specification to the contrary, when two opposing parties are ordered to pay damages to one another, the monetary awards shall offset each other, and the party that owes the larger amount shall pay the net difference.
The final amendments are effective for arbitration awards that are rendered on, or after, October 24, 2016.
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