The Financial Industry Regulatory Authority today launched a pilot program specifically designed for large arbitration cases involving claims of $10 million or more.
The program allows parties to customize the administrative process to better suit special needs of a larger case and allows them to bypass certain Finra arbitration rules. Participation in the program is voluntary and open to all cases. To be eligible, parties are required to pay for any additional costs of the program and must be represented by counsel.
Finra, the independent regulator for all securities firms doing business in the U.S., will send a letter to parties in cases involving claims of $10 million or more to solicit participation in the pilot program.
"In response to the increasing number of very large cases, we wanted to introduce a more formal approach to give parties greater flexibility and more control over the administration of their case," said Linda Fienberg, president of Finra Dispute Resolution.
Parties may customize the process with the option to:
have additional control over the method of arbitrator appointment and the qualifications of arbitrators
hire non-Finra arbitrators for their case
develop their own procedures for exchanging information prior to the hearing
have expanded discovery options such as depositions and interrogatories
choose from a wider selection of facilities.