On March 16, 2022, FINRA issued Regulatory Notice 22-09 in which the self-regulatory organization sought comments on its proposed rule to accelerate FINRA arbitration proceedings for seriously ill or elderly parties.
FINRA currently offers expedited arbitration proceedings for Claimants with serious health conditions or who are at least 65 years old. The voluntary program allegedly accelerates case-related tasks that FINRA can control, such as scheduling and other components.
However, FINRA recently admitted in its Regulatory Notice that the accelerated path currently available for eligible Claimants did not result in meaningfully shortened case processing time, and the self-regulatory organization is now seeking comment on a proposal to solve this problem.
FINRA proposes adding a new rule that would permit any party to request accelerated processing of an arbitration proceeding under one of the following circumstances:
FINRA listed 6 areas where timeframes would be shortened under the new rule:
FINRA states in its Regulatory Notice that the 75-year-old age requirement’s purpose is to focus on those parties who are most likely to need acceleration. Claimants in this age bracket are more likely to become unable to participate in a hearing after a claim is filed than those who are 65 or older, as demonstrated by published rates of adverse health conditions and mortality.
FINRA explains in its Regulatory Notice that its medical diagnosis and prognosis requirement aims to balance individual privacy concerns and the potential for abuse of the FINRA arbitration process. Under the proposed rule, Claimants would have to provide a certification on a form provided by FINRA, which would be notarized and submitted when initiating the arbitration or filing the answer.
KlaymanToskes is a leading national securities law firm practicing exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. KlaymanToskes has recovered more than $230 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.