FINRA proposed amendments to FINRA Rule 12403 of the Code of Arbitration Procedure for Customer Disputes. The proposed amendments increase the number of public arbitrators on lists provided by FINRA. Under the current version of FINRA Rule 12403(a), FINRA allows parties to choose three arbitrators in customer cases (which tend to be disputes in which claims (i) involve damages that exceed $100,000 or (ii) do not involve monetary damages). Parties select arbitrators by ranking and striking them on computer-generated lists provided by FINRA. The proposed amendments would increase the number of (i) public arbitrators on such lists from 10 to 15, and (ii) strikes that parties may make from four to six. This allows the same proportion of strikes to arbitrators under the current rule.
Comments on the proposal must be submitted within 60 days after its publication in the Federal Register.
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