U.S. securities regulator FINRA is reconsidering the mix of industry and public members in its arbitration panels while also taking actions to expand the pool of arbitrators, Chairman and Chief Executive Richard Ketchum told Reuters on Monday.
FINRA -- the Financial Industry Regulatory Authority -- is a regulator affiliated with the securities industry it monitors. Brokerage customers are required to bring their complaints before FINRA arbitration rather than through the courts.
Historically, those panels included one industry member and two "public" representatives. Currently, FINRA is running a pilot program which allows parties to choose whether to include an industry arbitrator or have three public members on their panel.
"I believe there are strong arguments for us to move to an environment where the parties can make a choice to only have public arbitrators," Ketchum said at the Reuters Global Exchanges and Trading Summit in New York.
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