At a glance
- The proposed changes are in FINRA Regulatory Notice 26-06, an open request for comment that launched in March and drew more than 100 public comments.
- Wojciechowski, a partner at Chicago's Stoltmann Law Offices, said PIABA will tell Congress, regulators and the media if FINRA adopts rules favored by the Securities Industry and Financial Markets Association.
- For advisors at broker-dealers, the $100,000 threshold is the practical marker: reintroducing a non-public arbitrator would change who hears larger client disputes, and a written-filing dismissal standard would change how quickly they end.
Joseph Wojciechowski, who became president of the Public Investors Advocate Bar Association on Nov. 1, warned that industry-backed changes to FINRA arbitration rules could weaken investor protections, WealthManagement.com reported.
The proposed changes are in FINRA Regulatory Notice 26-06, an open request for comment that launched in March and drew more than 100 public comments.
Wojciechowski, a partner at Chicago's Stoltmann Law Offices, said PIABA will tell Congress, regulators and the media if FINRA adopts rules favored by the Securities Industry and Financial Markets Association.
He flagged two changes: a return of the mandatory industry arbitrator, dropped in 2011 after applying to proceedings above $100,000, and allowing arbitrators to dismiss cases based solely on written filings.
For advisors at broker-dealers, the $100,000 threshold is the practical marker: reintroducing a non-public arbitrator would change who hears larger client disputes, and a written-filing dismissal standard would change how quickly they end. Wojciechowski said the industry remains uncertain how regulators will approach arbitration reform.
Reported by the Practice management desk from WealthManagement.com. Published . Corrections