A report from a FINRA task force recommends 51 changes to the arbitration process. Among these changes is increasing the stipend for arbitrators, explanation of arbitration decisions unless one party opts out, and revamping the expungement process for advisors. It also recommends adding a mediation process to a system. FINRA’s arbitration system has been viewed as biased for many years. Hugh Berkson, president of the Public Investors Arbitration Bar Association, finds the report balanced, although he believes the recommendations regarding expungement don’t go far enough. “Let’s at least start with this,” he said. One issue not addressed in the recommendations is the mandatory arbitration requirement.
A task force recommended changes to FINRA’s arbitration processes, including more transparency regarding decisions, increased compensation for arbitrators, and an overhaul of the expungement process. Hugh Berkson, president of the Public Arbitrators Bar Association found the report to be balanced but believes more changes must be made to the expungement process.
Hugh Berkson is a Securities Attorney with McCarthy, Lebit, Crystal & Liffman, Co. LPA with over 20 years of representing individuals who have lost money due to the negligence of investors and brokers.
Hugh is a past President of the Public Investors Arbitration Bar Association (PIABA), an international legal association composed of practitioners who represent investors in disputes with the securities industry. He was also just re-elected to PIABA’s Board of Directors, where he has served as a director since 2011.
