Clinic Comments on FINRA Proposal to Change Arbitrator Chair Qualifications

As part of its mission of serving regular investors, the Investor Advocacy Clinic reviews FINRA rule proposals and submits comments after fully evaluating the proposal.  Earlier this week, the clinic commented on FINRA SR-2016-033, a proposal that would require change the qualifications necessary to become a public chair qualified arbitrator.

The clinic’s comment, drafted primarily by fall 2016 student intern Geoffrey Hafer, praised FINRA for taking steps to increase the roster of public, chair qualified arbitrators.  Hafer noted that FINRA should also revisit the definition of “public” arbitrators and consider revisions in light of the size of the current pool due to a recent change in the definition.  Moreover, the clinic recommended that alternative training be available to arbitrators who wish to serve as a chair to ensure that FINRA arbitrators continue to be of the highest quality.  Click here to read the Clinic’s comment letter in its entirety.