Who is Eligible to Serve as Chairperson on a FINRA Arbitration Panel?

Chairpersons in customer disputes must:

1.        Be a public arbitrator

2.       Complete chairperson training

3.       Have a law degree

4.       Be a member of a bar of at least one jurisdiction

5.       Have served as an arbitrator through award on at least two arbitrations administered by a self-regulatory organization in which hearings were held

6.       Or, instead of items 3-5 have served as an arbitrator through award on at least three arbitrations administered by a self-regulatory organization in which hearings are held

See FINRA Code of Arbitration Procedure for Customer Disputes 12400.

How are FINRA Arbitrators Selected?

The Financial Industry Regulatory Authority (FINRA) maintains a roster of eligible arbitrators that correspond to the hearing location.  For example, if your securities arbitration will be held in Minneapolis, Minnesota, your pool of arbitrators will come from Minnesota and surrounding states. After arbitration is filed, FINRA generates a list of potential arbitrators from the aforementioned pool by using FINRA’s Neutral List Selection System.

The parties receive a list of potential non-public, public, and chairperson-eligible arbitrators.  After researching the arbitrators, the parties rank and strike them.  FINRA factors in the rankings and informs the parties of which three arbitrators will preside over the case.

See Rule 12400, FINRA Code of Arbitration Procedure for Customer Disputes.