The proposal expands the “non-public” arbitrator definition by: (1) requiring individuals who worked in the financial services industry for any duration to always be classified as non-public arbitrators; (2) adding new categories of financial industry personnel who qualify as non-public arbitrators; and (3) requiring professionals (e.g., attorneys and accountants) devoting a significant part of their business to representing or providing services to parties in disputes concerning investments or employment relationships to be classified non-public. With respect to the “public” arbitrator definition, the proposal (1) adds criteria disqualifying persons from being classified or reclassified as a public arbitrators, and (2) extends “cooling off” periods for certain professionals – such as those in item 3 above – from being reclassified as public arbitrators. The proposed changes are pending before the SEC.
Representing financial professionals, financial institutions and investors in investment loss, employment and disclosure matters, and in regulatory investigations nationwide.
FINRA Proposes Changes to Definitions of Non-Public and Public Arbitrators
