February 27, 2024
FINRA amended [1] 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 [2] 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 [3].