SEC Approves FINRA Rule Change Regarding "Non-Public" and "Public" Arbitrator Definitions (Fed. Reg.)

The SEC's approval of FINRA's revisions to the definitions of "non-public" and "public" arbitrator was published in the Federal Register.

FINRA proposed to delete and replace the two definitions in FINRA Rule 12100 of the Customer Code and FINRA Rule 13100 of the Industry Code.

New Rule 12100 of the Customer Code broadens the application of the current Rule 12100 by (i) increasing the look-back period from two years to five years, (ii) making the rule apply not only to services provided to specified financial industry entities, but also to services provided to any persons or entities associated with those specified financial industry entities, and (iii) permanently disqualifying from serving as public arbitrators any persons who provided the specified services for 15 calendar years or more over the course of their careers.

See: 80 FR 11695.Related news: FINRA Extends Time for SEC Action regarding Definitions of "Non-Public" and "Public" Arbitrator (August 6, 2014); SIFMA Submits Comments on FINRA-Proposed Rule Regarding Definitions of "Non-Public" and "Public" Arbitrator (July 25, 2014); FINRA-Proposed Rule Change Relating to Revisions to Definitions of "Non-Public" and "Public" Arbitrator (Fed. Reg.) (July 3, 2014); FINRA Proposes Rule Change Relating to Revisions to Definitions of "Non-Public" and "Public" Arbitrator (June 18, 2014).