SEC Institutes Proceedings on FINRA-Amended Proposed Rule Change Relating to Expanding Arbitrators' Authority (Fed. Reg.)

The SEC instituted proceedings to determine whether to approve a FINRA-proposed rule change to amend FINRA Rule 12104 and Rule 13104 to permit arbitrators to make referrals to FINRA during an arbitration case, and adopt new rules to address the assessment of hearing session fees, costs, and expenses if an arbitrator made a referral during a case that resulted in withdrawal of the entire panel.

FINRA filed Amendment No. 1 in response to comments on the proposal on May 19, 2014. The SEC is requesting further comment on the amended proposal to help determine whether to approve or disapprove the rule change.

Comments are due by June 26, 2014. Any person who wishes to file a rebuttal to another person's submission must file the rebuttal by July 11, 2014.

See: 79 FR 30206. Related news: FINRA Proposes to Expand Arbitrators' Ability to Make Referrals for Suspected Bad Conduct (January 29, 2014).