FINRA’s Post

Are you a FINRA public arbitrator? Are you ready to take your skills to the next level and serve on the Chairperson Roster? Complete the Chairperson Training today and receive $200! Learn more ▶️ https://bit.ly/3DKnq5C

Are you a FINRA public arbitrator? Are you ready to take your skills to the next level and serve on the Chairperson Roster? Complete the Chairperson Training today and receive $200! Learn more ▶️ https://bit.ly/3DKnq5C

Are you a FINRA public arbitrator? Are you ready to take your skills to the next level and serve on the Chairperson Roster? Complete the Chairperson Training today and receive $200! Learn more ▶️ https://bit.ly/3DKnq5C

Check out my article on JD Supra discussing the recent amendments to the FINRA Codes of Arbitration Procedure, effective March 4, 2024.

The Importance of Selecting Arbitrators in FINRA Arbitration Selecting the right arbitrators in FINRA arbitration is a critical component of ensuring a fair and favorable outcome for clients involved in disputes with brokerage firms. At Bakhtiari & Harrison, we understand the intricacies of the arbitrator selection process and the impact it can have on arbitration claims. Our meticulous approach to selecting arbitrators helps us provide the best possible representation for our clients, whether we are representing a claimant or respondent. https://lnkd.in/gm7fDHP8 hashtag #finra hashtag #finraarbitration hashtag #bhseclaw

In our latest alert, my colleagues Allison Schoenthal, Brooks Brown, Matthew Wisnieff, Matthew Lyskawa and I delve into the new JAMS mass arbitration procedures and compare them to the AAA mass arbitration rules. It is crucial for companies to reassess their arbitration terms in light of the innovative frameworks put forth by JAMS and AAA.

Have you also seen an uptick in mass arbitrations (filing multiple, or even thousands, of individual arbitrations v the same defendant)? JAMS, like AAA, have now created new rules you’ll need to know. Check out our alert. #goodwinlaw #consumerfinance #financialservices #arbitration #massarbitration #classaction

$MMTLP Most recent complaint filed against TradeStation and FINRA filed by Mark R. Basile, Esq. PART 3 of 4 Page 14 (pg 20 of 27) Plaintiff does not disagree that an agreement to arbitrate before FINRA was entered into between the parties. Further, Plaintiff does not disagree that public policy generally favors the enforcement of arbitration agreements, as held by the U.S. Supreme Court, should the arbitration proceedings be held with complete impartiality. However, it is indisputable that FINRA, as an alternative dispute resolution service, as well as individual arbitrators independently contracted and paid by FINRA, would be biased in favor of TradeStation as it relates to Plaintiff’s claims that arise from FINRA’s regulatory activities It is the fact, unique to this case, that FINRA had taken a series of several questionable regulatory activities directly concerning the MMTLP security which FINRA has failed to properly account for—the numerous volumes of evidence of FINRA’s failure to respond to inquiries, in lawsuits, in special proceedings, in FOIA requests and above all, Congressional inquiry—leaves no doubt that the unique element to this case is FINRA’s direct involvement, through its regulatory actions, that have caused this mess Page 16 (pg 22 of 27) As independent contractors, FINRA’s “neutral” arbitrators receive compensation at a rate of $300 per hearing session... ...Similar to a juror, arbitrators are intended to be neutral fact-finders. Generally, jurors are excluded when there is a showing of express or implicit bias. In the eyes of Plaintiff, it is unjust to permit a panel of arbitrators with a financial connection to FINRA to make decisions in a dispute which arose out of the regulatory activities of the same entity that the arbitrators are financially contracted with. Psychologically, each and every arbitrator that receives work from, and is financially compensated by FINRA will hold an implicit bias in favor of FINRA, especially when FINRA’s regulatory activities are one of the main causes of the dispute Page 17 ( pg 23 of 27) See FINRA Rule 12507 (“Standard interrogatories are generally not permitted in arbitration”); FINRA Rule 12510 (“Depositions are strongly discouraged in arbitration. Upon motion of a party, the panel may permit depositions, but only under very limited circumstances…”). The arbitrator also has complete control over a party’s subpoena power as it is the arbitrator that issues the subpoena, not counsel to the parties. Page 18 (pg 24 of 27) It is inconceivable that a rational individual could believe, or reasonably foresee, that Plaintiff’s claims against TradeStation could arise out of the Agreements as a result of FINRA’s regulatory activities. Further, it was an impossibility that Plaintiff could have foreseen its claims arising out of TradeStation’s illegal activity that was unknown to Plaintiff at the time the Agreements were executed

My colleague Svetlana Gitman has written a great blog post on considerations in selecting an arbitrator for your dispute - check it out!

When faced with a dispute, finding the right arbitrator is crucial. Discover the secret to choosing the perfect arbitrator with insights from Svetlana Gitman, vice president of the AAA-ICDR Commercial Division. As Svetlana explains, the right arbitrator should align with dispute-specific expertise, be comfortable with tough decisions, exhibit trustworthiness, and truly understand the needs and concerns of the client. Read the full article to explore these steps in more detail and learn to confidently select the right arbitrator: https://bit.ly/3sUb0qh