FINRA Reforms Arbitrator Picks for Faster Finance Fights
Published Date: 3/14/2025
Notice
Summary
FINRA wants to tweak how arbitrators are picked for certain financial dispute cases to give more chances to public arbitrators who aren’t chair-qualified. They’re also setting clearer rules on timing for asking questions, withdrawing info requests, and removing arbitrators. These changes affect anyone involved in FINRA arbitration and could speed up the process without extra costs, with a decision expected by March 28, 2025.
Analyzed Economic Effects
8 provisions identified: 5 benefits, 1 costs, 2 mixed.
Stricter enforcement of ranked-list deadline
FINRA would codify that after striking and ranking arbitrators, parties must return ranked lists within 20 days, and 'absent extraordinary circumstances,' the Director will not grant extension requests filed after the deadline has elapsed.
More chances for non-chair public arbitrators
For three-arbitrator cases, the list-selection algorithm will give public arbitrators who are NOT chair-qualified two chances to be selected for the public list, while chair-qualified public arbitrators will get one chance. An individual arbitrator still cannot appear more than once on the public list.
Faster delivery of arbitrator lists (30→20 days)
FINRA would shorten the rule timing for sending the arbitrator lists to parties from approximately 30 days after the last answer is due to 20 days. The change is reflected in proposed Rules 12402(c)(1), 12403(b)(1), and 13403(c)(1).
Full post-education employment disclosures
FINRA would remove the phrase 'for the past 10 years' and instead provide each arbitrator's full post-education employment history and other background information in a disclosure report to the parties.
New rules for requesting arbitrator information
A party may request additional information about an arbitrator at any stage of the proceeding and may omit information that would reveal the identity of the requesting party. Opposing parties may object within ten days of receipt; the Director will forward the request and any objections to the arbitrator after five days have elapsed from service of objections, provided the request has not been withdrawn. The Director may toll the time for parties to return ranked lists when additional-information requests are pending.
Strike non-public arbitrators for any reason
The proposed rule would amend Rule 12403(c)(1)(A) to expressly provide that each separately represented party may strike any or all arbitrators from the Non-Public List 'for any reason.'
When parties can agree to remove arbitrators
The Director may remove an arbitrator at any stage if all named parties agree in writing to the arbitrator's removal. However, parties may not agree to remove an arbitrator who is considering a request to expunge customer dispute information, except that a party may still challenge such an arbitrator for cause under specified rules.
Limits and remedy for disclosing removal challenges
The proposed rules would prohibit a party from informing the panel or arbitrator of another party's causal challenge. If such a disclosure occurs, the party who requested removal may file a written motion for removal with the Director within five days of being made aware of the disclosure; failure to file within five days forfeits the opportunity. Absent extraordinary circumstances, the Director shall grant such a motion.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
2026-10373, Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222, Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651, Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-16936, Eagle Point Credit Management LLC and Eagle Point Trinity Senior Secured Lending Company
2026-16951, Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule Regarding Certain Free Trials
Cboe C2 Exchange is changing its free trial offer for certain market data. Instead of letting users pick any six months of past data, everyone will get the same fixed six-month period from July to December 2022. This update starts right away and helps keep things simple for traders and data users.
Previous / Next Documents
Previous: 2025-04080, Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the NYSE American Options Fee Schedule To Increase Specialist and e-Specialist Manual Transaction Fees and Remove Obsolete Text Related to the Options Regulatory Fee and NYSE FANG+ Index
Starting March 7, 2025, NYSE American is raising the fee for manual option trades done by Specialists and e-Specialists from 30 cents to 50 cents per contract. They’re also cleaning up old, outdated fee info about the Options Regulatory Fee and the NYSE FANG+ Index. This change mainly affects traders using manual transactions and helps keep the fee schedule fresh and clear.
Next: 2025-04082, Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Designation of a Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Adopt a Provision That the Exchange Will Not Review a Compliance Plan Submitted by a Listed Company That is Below Compliance With a Continued Listing Standard if the Company Owes Any Unpaid Fees to the Exchange and Will Instead Immediately Commence Suspension and Delisting Procedures if Such Fees Are Not Paid in Full
The New York Stock Exchange wants to make sure companies pay all their fees before they can submit a plan to fix listing problems. If a company owes money and doesn’t pay up by the deadline, the Exchange will start suspending and delisting them right away. This affects all companies listed on the NYSE and could speed up the removal of those behind on fees.