FINRA weighing future of remote participation in arbitration hearings

On Behalf of | Nov 22, 2021 | FINRA Compliance

The Financial Industry Regulatory Authority is considering whether to implement a permanent hybrid approach regarding its arbitration hearings, according to Investment News.

FINRA suspended in-person hearings at the beginning of the pandemic in March 2020 and offered parties the option of participating in hearings remotely through conference call or Zoom. The in-person hearings resumed in jurisdictions across the country in August due to the improvement in public health conditions and the number of people vaccinated. But parties involved in arbitration disputes were still offered the option of requesting a remote hearing.

Recently, FINRA President and CEO Robert W. Cook said a task force is now exploring the possibility of allowing remote participation in hearings to become permanent. Speaking at a conference sponsored by the McDonough School of Business at Georgetown University, Cook said the task force includes representatives of investors and the financial industry, who he said would “help us think about how we can continue have a hybrid environment in this space going forward.”

Last spring, the Public Investors Advocate Bar Association called on FINRA to end remote hearings, saying they were harming investors.
Through FINRA’s arbitration system, a panel conducts hearings and adjudicates disputes between customers and firms and registered representatives.

Handling financial services disputes requires counsel with a significant understanding of the industry, the laws and regulations that impact our clients, and the forums in which disputes are adjudicated. At Lewitas Hyman, our attorneys’ unparalleled litigation experience comes from leveraging their industry-specific knowledge developed from working at firms such as Morgan Stanley, UBS Financial Services and EVEREN Securities, serving as outside counsel for some of the world’s largest law firms, and through prior affiliations with the SEC. For more information about our arbitration and litigation services, please contact us at (312) 291-4600 or through our online contact form.

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