The Securities and Exchange Commission (SEC) is evaluating changes proposed by the Financial Industry Regulatory Authority (FINRA) to the arbitration process they use to settle disputes. FINRA wants to modify the rules to improve how arbitrators are selected and address issues like list selection, requests for more information, and removal of arbitrators. This includes giving non-chair-qualified public arbitrators a better chance to be selected, setting clear deadlines for requests related to arbitrators, and updating outdated references in their rules. The SEC is seeking public comments to decide whether to approve or disapprove these changes by April 2025.
Simple Explanation
The Securities and Exchange Commission is thinking about letting FINRA change some rules to make picking the people who decide who wins a fight about money fairer and clearer. They want people to say what they think about these changes before they decide whether to say yes or no to them by next April.