Exam Alert: FINRA to raise limit for simplified arbitration

The SEC has approved amendments to FINRA’s arbitration rules. These amendments, effective July 23, 2012, raise the limit for claims under simplified arbitration from $25,000 to $50,000. Continue reading

The SEC has approved amendments to FINRA’s arbitration rules.  These amendments, effective July 23, 2012, raise the limit for claims under simplified arbitration from $25,000 to $50,000.  These changes apply to both arbitration claims involving customers and claims involving other members of the securities industry.

Simplified arbitration is a streamlined arbitration process where both parties submit written statements to a single arbitrator, who then evaluates the claim.  Note that if a counterclaim raises the amount in dispute to over the $50,000 limit, then the dispute will not be resolved through simplified arbitration.

Source: FINRA Regulatory Notice 12-30

This alert applies to the Series 62, Series 24, Series 82, Series 6, Series 7, Series 79, and Series 26.