FINRA reported taking action on 35 of the 51 recommendations issued by the FINRA Dispute Resolution Task Force in December 2015. The recommendations are intended to enhance FINRA's arbitration and mediation proceedings.
Specifically, FINRA reported that:
- the SEC approved two FINRA proposals that address Task Force recommendations to (a) increase the number of public arbitrators from which parties may choose during the panel selection process and (b) permit arbitrators to grant a party's motion to dismiss if the arbitrators determine that the non-moving party previously brought a claim regarding the same dispute against the same party and the claim was fully and finally adjudicated on its merits;
- the FINRA Board approved four proposals relating to (a) expungement relief, (b) case management, (c) ensuring that the new definitions of public and non-public arbitrators do not overly exclude qualified individuals as public arbitrators, and (d) developing an intermediate forum for small claims; and
- FINRA staff implemented recommendations that did not require rulemaking, particularly those involving forum transparency, arbitrator recruitment and training, and case administration processes.
FINRA stated that additional action on the remaining 16 recommendations is still pending and that FINRA staff will provide periodic updates going forward.
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