Rules changes adopted by the Financial Industry Regulatory Authority are aimed at expediting arbitration proceedings for investors who are older or who have serious health problems.
In Regulatory Notice 25-18, FINRA said it approved amendments that add new Rules 12808 and 13808 (Accelerated Processing) to the arbitration codes and are effective for arbitration cases filed on or after March 30, 2026.
The amendments accelerate case processing by codifying shortened case-processing deadlines for eligible parties and providing guidance to arbitrators regarding how quickly they should try to complete an arbitration proceeding.
According to FINRA, parties may request accelerated processing of a case when initiating an arbitration or filing an answer provided that the party making the request is at least 70 years of age or has received a medical diagnosis and prognosis that causes the party to have a reasonable belief that accelerated processing of the case is necessary to prevent prejudicing the party’s interest in the arbitration.
FINRA stated that its current program for expediting arbitration proceedings does not provide for shortened, rules-based deadlines for parties or provide arbitrators with guidance on how quickly the arbitration should be completed. As a result, cases that qualify for the current program close only marginally more quickly than cases that are not in the current program.
The newly approved amendments also allow parties who may benefit from shortened proceedings but do not qualify for accelerated processing under the age or health eligibility requirements, to request that the panel consider other factors, including a party’s age and health, when scheduling hearings and discovery, briefing and motions deadlines.
FINRA’s Director of Dispute Resolution Services is responsible for determining whether a party’s request for accelerated processing complies with the requirements of being at least 70 years of age or submitting the required certification regarding an eligible health condition.
Accelerated proceedings would be carried out in three ways:
-The Director would send out the lists of potential arbitrators to the parties more quickly than under the current program. Currently, the Director must send the lists of potential arbitrators to the parties “within approximately 30 days after the last answer is due,” regardless of the parties’ agreement to extend any answer due date. The amendments require the Director to send the arbitrator lists “as soon as practicable after the last answer is due, notwithstanding any agreement of the parties to extend any answer due date.”
-Arbitrators would be provided with guidance as to how quickly they should try to complete arbitrations. The panel must endeavor to render an award within 10 months of the date the Director determines that a case is subject to accelerated processing. The panel is also required to hold a prehearing conference to set discovery, briefing and motions deadlines, and schedule hearing sessions, that are consistent with rendering an award within 10 months or less.
-Proceedings are accelerated by shortening various default deadlines that apply to parties under the Codes. For example, under the Codes, a respondent must serve the signed and dated Submission Agreement and answer on each party within 45 days of receipt of the statement of claim. In an accelerated proceeding, this deadline is shortened to within 30 days. The deadline for responding to a third-party claim by serving all other parties with the signed and dated Submission Agreement and answer would be reduced from within 45 days of receipt to 30.
Other shortened deadlines include completing arbitrator lists and carrying out discovery in customer cases.
Handling financial services disputes requires counsel with a significant understanding of the industry, the laws, rules and regulations that impact our clients and the forums in which disputes are adjudicated. At Hyman Cotter PC, our attorneys’ unparalleled litigation experience comes from leveraging their industry-specific knowledge developed from working at firms such as Morgan Stanley, UBS Financial Services, 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.
