SEC Order Approving FINRA-Proposed Rule to Broaden Arbitrators' Authority to Make Referrals during Arbitration Proceeding Published (Fed. Reg.)

The SEC order approving a FINRA-proposed rule change, as modified by partial Amendment No. 1, to broaden arbitrators' authority to make referrals during arbitration proceedings was published in the Federal Register.

Originally, the proposed rule change was filed on July 12, 2010. Subsequently, it was amended, withdrawn and re-proposed on January 29, 2014.

The rule change amends FINRA Rule 12104 of the Code of Arbitration Procedure for Customer Disputes and Rule 13104 of the Code of Arbitration Procedure for Industry Disputes to broaden arbitrators' authority to make mid-case referrals if arbitrators become aware of any matter or conduct that may pose "a serious threat," among other things.

See: 79 FR 61915. Related news: SEC Institutes Proceedings on FINRA-Amended Proposed Rule Change Relating to Expanding Arbitrators' Authority (Fed. Reg.) (May 23, 2014); FINRA Proposes to Expand Arbitrators' Ability to Make Referrals for Suspected Bad Conduct (January 29, 2014).