FINRA Amends Arbitration Codes

Category: Commercial Litigation and Arbitration

February 27, 2024

FINRA amended its Code of Arbitration Procedure, introducing changes to the arbitration list selection process and clarifying procedural requirements.

The revisions make changes to the arbitration list selection process, which include codifying manual review of arbitrators for conflicts of interests, mandating written explanations for challenges to remove an arbitrator, and clarifying the timing and procedures for such challenges.

The revisions also clarify requirements for prehearing conferences, hearings, claims and motions practice, case dismissals and hearing records. These amendments address the following areas:

Number of Hearing Sessions Per Day
Redacting Confidential Information
Update Submission Agreement When Filing a Third Party Claim
Amending Pleadings or Filing Third Party Claims
Combining Claims
Motion Practice
Virtual Prehearing Conferences
In-Person Hearings
Virtual Option for Special Proceeding
Witness Lists Shall Not Be Combined with Document Lists
Hearing Records
- Parties’ Responsibilities for Distributing the Official Record of a Hearing
- Executive Sessions
Dismissal of Proceedings for Insufficient Service
Dismissal of Claimant’s Claims Requires Issuance of an Award

The amendments were based on an independent review of FINRA’s Dispute Resolution Services in 2022.

These amendments are effective for arbitration cases filed on or after March 4, 2024.

To read how Castaybert PLLC can assist you in arbitration matters, click here.